Goodfood Market

Goodfood Market Corp.
Public
Traded as TSX: FOOD
Founded 2014
Founder
  • Jonathan Ferrari
  • Neil Cuggy
Headquarters Montreal, Quebec, Canada
Key people
 Jonathan Ferrari (Chief executive officer)
Website https://www.makegoodfood.ca

Goodfood Market Corp. is a Canadian public meal kit company based in Montreal, Quebec. It had 61,000 subscribers as of February 28th, 2018,[1] an estimated 30 to 40% of the meal kit market.[2] It is listed on the Toronto Stock Exchange. As of 2018, the company was not profitable; it lost $2.4 million in the second quarter of 2018.[3]

History

Goodfood was founded in 2014 by Jonathan Ferrari and Neil Cuggy, two former employees at RBC.[2] In June 2017, the company became a publicly traded entity through a reverse takeover of a shell company on the TSX Venture Exchange and raised $21 million of capital (the company later graduated to the Toronto Stock Exchange).[4] There was some criticism of the company for going public through a reverse takeover, as opposed to a more conventional IPO; the company used a reverse takeover to minimize cost and reporting requirements.[4] Goodfood was also criticized for going public too early; according to Hannes Blum, a venture partner with Acton Capital. "I don't think [Goodfood] is a company that should go public before they see $50 million in revenues."[4] Goodfood went public significantly before its larger rival Chef's Plate, which is planning an IPO in 2018 or 2019.

Goodfood experienced significant growth after going public: its subscriber base increased 35% to 31,000 in the quarter ending on August 31, 2017[5], and another 45% to 45,000 in the quarter ending in November 31, 2017.[2]

Business

Goodfood prepares meal kits that are delivered to subscribers, with an average cost per serving of around $10.[2] It currently delivers to Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia and the Maritimes. The company estimates that it has 30 to 40% of the Canadian meal kit market. The company faces substantial risks from the threat of Amazon entering the market, as it has not yet done.[5] It also has high customer turnover, as do most other meal kit companies.[5] Its most significant rival is Chef's Plate, the largest meal kit provider in Canada, based in Ontario; other rivals include HelloFresh (based in Berlin), MissFresh (based in Quebec), and Cook It (based in Quebec) .[6][3] As of 2018, the company was not profitable; it lost $2.4 million in the second quarter of 2018, on $15.6 million in revenues.[3] The losses were due, in part, to the company's rapid growth. Ferrari claimed that the company could be profitable immediately if it did invest in its growth.[3]

References

  1. ↑ "Goodfood Active Subscribers Count Reaches 61,000, an Increase of 36% Quarter Over Quarter". MarketWired.
  2. 1 2 3 4 "Goodfood Market Corp. celebrates its first full year as a meal kit company". Financial Post. 2017-12-07. Retrieved 2018-02-01.
  3. 1 2 3 4 "Goodfood pourrait passer en mode acquisition". www.lesaffaires.com (in French). 2018-01-15. Retrieved 2018-02-01.
  4. 1 2 3 "Montreal meal-kit firm Goodfood prepares for public debut". The Globe and Mail. 2017-05-30. Retrieved 2018-02-01.
  5. 1 2 3 "Goodfood bets Canadian meal kits can outshine Blue Apron, Amazon". The Globe and Mail. 2017-09-21. Retrieved 2018-02-01.
  6. ↑ "Why Meal Kits are Growing in Popularity". The Montreal Gazette. 2017-08-05.
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