Axfood AB: to close down its meal kit company

Stockholm / SE. (axf) Due to weak market development for pre-planned subscribed meal kits, Sweden’s Axfood AB has made the decision to close down its meal kit company Middagsfrid AB as of the last day in September, and make use of the value Middagsfrid has created in other ways. In conjunction with closing down the operations, an agreement is entered into with Linas Matkasse (… with head office in Sundbyberg) around cooperation to continue to offer the customers of Middagsfrid meal kits to their homes.

(Photo: Axfood AB)

Middagsfrid was established in 2007 and was first to offer home delivery of pre-planned subscribed meal kits. Axfood acquired Middagsfrid in 2017 to further strengthen and broaden the Group’s customer offering. Middagsfrid has developed a new customer offering with modern meal kits, as well as innovation through the food of the future and e-commerce with food, which has driven growth during the past year.

The online market for meal kits is today estimated to amount to less than 1 percent of the total food retail market in Sweden. Changed consumer behaviours during the period with high inflation has had a negative impact on this market segment, which means that going forward, the potential to reach the desired scale and long-term sustainable profitability for Middagsfrid is deemed to be challenging.

«During the past years, Middagsfrid has created a modern and appreciated offering of meal kits and contributed with food innovation in the Axfood Group. We constantly maintain a high development pace to strengthen our competitiveness within many areas, however as a result of a poor market development for pre-planned meal kits, we have now decided to close down Middagsfrid and instead make use of the value that Middagsfrid has created in new forms,» says Carl Stenbeck, Head of Strategy and Business Development at Axfood.

The value that Middagsfrid has created during the years will going forward be managed and further developed by other parties. A cooperation agreement with Linas Matkasse is entered into with the purpose to offer the customers of Middagsfrid to shop for meal kits with Linas Matkasse in the future. In addition, Hemköp will take over Middagsfrid’s database of recipes with more than 8,000 recipes and food inspiration, to further strengthen Hemköp’s customer offering and inspire to good meals. Lastly, Urban Deli, Axfood’s restaurant chain, will take over Middagsfrid’s cooperation with Axfoundation and Torsåker Farm around innovation and the food of the future.

The operations of Middagsfrid will cease as of 30 September 2024. 39 employees are affected and negotiations with the unions have been initiated.