Nestlé, the world’s largest food company, has placed a major bet on the future of food delivery and ecommerce after it agreed a $1.5bn (€1.3bn) deal to acquire Freshly, a US start-up company that specialises in home delivery of pre-cooked healthy meals.

Founded in New York in 2015, Freshly allows consumers to choose up to 12 pre-cooked meals per week from its online menu. These pre-cooked meals are then delivered directly to the consumer’s home, to be reheated as needed.

This model is seen as more convenient for consumers than other meal delivery services like Blue Apron, which offers meal kits that consumers still have to prepare themselves.

Under the terms of the deal, Nestlé will pay an initial $950m (€815m) upfront to acquire full control of Freshly

Pricing for Freshly meals ranges from €7.50 to €10 per meal, depending on the number of meals ordered per week. Nestlé said it expects Freshly’s sales to hit $430m (€370m) this year, with the company now shipping 1m pre-cooked meals per week to customers in 48 US states.

Under the terms of the deal, Nestlé will pay an initial $950m (€815m) upfront to acquire full control of Freshly. The Swiss food giant said it will pay up to a further $550m (€470m) in potential add-ons based on future growth.

“Consumers are embracing ecommerce and eating at home like never before. It’s an evolution brought on by the pandemic but taking hold for the long-term. Freshly is an innovative, fast-growing food-tech startup, which accelerates our ability to capitalise on the new realities in the US food market,” said Steve Presley, CEO of Nestlé USA.