Kroger Co (NYSE:KR) is establishing a footprint in the home meal kits business through the acquisition of Home Chef. The company has spent $700 million for this deal.

The company will initially pay $200 million to the Chicago based largest private meal kit company and balance of $500 million will be paid from earnings. Following the deal, the meal kits of Home Chef will join the prep+pared kits of Kroger on the shelves.

According to Chief Digital Officer of Kroger, Yael Cosset, the merger deal adds around 60 million shoppers of Kroger to Home Chef. It will also increase subscription and ship to home capabilities.

Kroger, the supermarket chain, will be able to improve its appeal to the customers, who want convenience, with delicious food preparation. All the necessary instructions to prepare the yummy dishes and food and the ingredients as well as components, will be supplied by Home Chef. It is ready to cook and satisfy the taste buds with the yummy and delicious meal.

The customers can place an order from the comfort of home or while on the move and the meal kits will be delivered to the doorstep.

Following the takeover, Home Chef will continue to offer meal kits online apart from making them available in the shelves of Kroger. Apart from this new business, Kroger will be offering prep+pared meals in over 525 stores as usual.


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Home Chef holds three distribution centers to serve 98% of the households in the continental US. It takes just two days to deliver the meal kits to the doorstep of customers.

Yael Cosset said the customers are looking for simplicity, convenience, and the personalized food experience right at home. Delivering exciting and innovative products and services of Home Chef to the doorstep makes the customers of Kroger delighted and plan for food preparation with ease. The customers can enjoy a delicious and yummy meal at home within a short span of time.

The customers, who don’t have time, are now increasingly preferring the convenience of meal kits. The meal kit at doorstep allows them to quickly prepare food using fresh ingredients and consume.