Instead of viewing these services only as immediate threats to our grocery store, CPG, online retail, and restaurant coverage, as many investors have assumed, we believe they’ve played a part in changing consumer behavior that investors can’t ignore. However, after digging deeper and speaking with several executives from leading meal-kit delivery services, we believe these platforms and other subscription-based companies may be thawing consumer perceptions of online grocery and restaurant delivery services while offering new growth avenues for consumer packaged goods, or CPG, companies and online retailers. When these services first hit the market, we viewed them as largely no-moat companies that represented only minimal threat to our consumer coverage. These services offer an attractive alternative that overlaps with consumers’ evolving views about fresh, healthy, and convenient dining options. If you’ve opened your browser or mailbox in the past year, chances are you’ve seen an advertisement for a meal-kit service like Blue Apron, HelloFresh, Home Chef, and others.

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