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MMM - Marley Spoon AG

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Founded in 2014 in Germany, Marley Spoon is a subscription-based weekly meal kit service that services customers in three primary regions: Australia, United States and Europe (servicing Austria, Belgium, Germany and the Netherlands). Since launch, Marley Spoon has delivered over 14.5 million individual meals and developed more than 9,000 recipes. As at 1 March 2018, Marley Spoon had over 111,000 Active Customers across both the Marley Spoon and Dinnerly brands.

It is anticipated that MMM will list on the ASX during July 2018.

https://marleyspoon.com
 
Martha & Marley Spoon sends the recipes of your choice and the fresh, pre-portioned ingredients you need to cook them directly to your door, so you can enjoy something new and delicious any night of the week.

Why???
 
So_Cynical said:
Why???
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Because we now live in a world of convenience where cooking from scratch is too hard. It takes time, thought and visits to places like supermarkets.

Marley Spoon appear to be tapping into the high disposable income but time poor market consisting of people who don't want to think about dinner but want something more interesting than a BBQ chook and a plastic container of coleslaw.
 
greggles said:
Because we now live in a world of convenience where cooking from scratch is too hard. It takes time, thought and visits to places like supermarkets.

Marley Spoon appear to be tapping into the high disposable income but time poor market consisting of people who don't want to think about dinner but want something more interesting than a BBQ chook and a plastic container of coleslaw.
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But you still have to cook whatever they drop at your door. I don't get the attraction of Marley Spoon. I live in inner-Sydney, the supermarket up the road from me has everything I need to make a meal and it takes about 10 minutes to go there buy what I want and come home and cook it. They also have a plethora of pre-cooked (not frozen) meals that range from lasagne through to soups and salads. There's an abundance of food recipes on the internet, it's not as though I need Marley's recipes. To me it just looks like a service providing very expensive groceries. The other drawback for the time poor is the use it or lose it nature of having fresh food delivered. If you get home from work at 8pm or later can you really be f**ked cooking a meal from scratch?
 
McLovin said:
But you still have to cook whatever they drop at your door. I don't get the attraction of Marley Spoon. I live in inner-Sydney, the supermarket up the road from me has everything I need to make a meal and it takes about 10 minutes to go there buy what I want and come home and cook it. They also have a plethora of pre-cooked (not frozen) meals that range from lasagne through to soups and salads. There's an abundance of food recipes on the internet, it's not as though I need Marley's recipes. To me it just looks like a service providing very expensive groceries.
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I don't understand it either. But I've never understood the Weight Watchers meals that they deliver to your door either. I don't get home delivered food that isn't a pizza or something that shows up hot and ready to eat and is usually ordered after a sixpack has been consumed.

It's winter so my practice this time of year is to make a hearty slow cooker meal on Sunday afternoon to eat that night but with enough leftovers for three dinners that week. Freeze in separate containers and microwave when you want a quick dinner. Cheap and quick meals.

Still, they have 111,000 customers according to their prospectus, so somebody is buying it and they are raising $70 million in the IPO. I wouldn't go near it but I will be watching with curiosity when it lists.
 
greggles said:
I don't understand it either. But I've never understood the Weight Watchers meals that they deliver to your door either. I don't get home delivered food that isn't a pizza or something that shows up hot and ready to eat and is usually ordered after a sixpack has been consumed.
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I understand the convenience of a microwavable meal, or what M&S in the UK do which are high quality oven re-heatable meals for home. I don't see the point of delivering someone a bunch of ingredients and a recipe card and saying now go cook. How far can you get with a product that has to run a very fine line between having recipes that are simple enough for lazy, amateur home cooks to attempt but complex enough to justify the price? Their natural competitors are supermarkets, Ubereats etc not pre-cooked meal delivery services imo. Portion sizes would be interesting to understand to. Do they load their meal kits up with cheap carbs and/or vegetables to offset the costs of delivery? If they do then my $15 steak at any of the ten pubs within spitting distance of my house start to look much more appealing.



greggles said:
Still, they have 111,000 customers according to their prospectus, so somebody is buying it and they are raising $70 million in the IPO. I wouldn't go near it but I will be watching with curiosity when it lists.
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They spend millions on advertising so not surprising the customer count is relatively high. What would be interesting to know is customer churn. That'll give you a much better insight in to whether customers perceive value.
 
To me it sounds like a wheel and deal meal for people working from home and not away.

The basic idea works for me - I live in a tower block, I can order only what I want, cook, eat, dispose little and keep my days off (if any) for quality of life rather than shopping.
 
McLovin said:
They spend millions on advertising so not surprising the customer count is relatively high. What would be interesting to know is customer churn. That'll give you a much better insight in to whether customers perceive value.
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Yes, I'd like to know this too. I suspect that it is probably quite high. I also noted this on their website concerning the use of funds raised in the IPO:
The Offer is being conducted to provide:
  • additional cash on Marley Spoon’s balance sheet, in particular to assist funding its growth strategy, fund expected losses and its strategy, and an increase in working capital;
  • for the repayment of certain of its existing debts;
  • additional financial flexibility and access to listed capital markets;
  • a liquid market for CDIs and an opportunity for others to invest in Marley Spoon; and
  • benefits of an enhanced profile that arises from being a listed entity, including to attract and retain quality employees.
The proceeds of the Offer will also be used to pay the costs of the Offer. No Existing Investors are selling down any of their holding as part of the Offer.
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So, apart from funding its growth strategy, the money will be used to fund expected losses, pay off debts and to gain an enhanced profile from being a listed entity so that they can attract and retain quality employees. Doesn't sound very innovative.

marleyspoon.png


Their net losses are increasing and an IPO is the best way to fund future losses without having to go around shaking a cup at venture capitalists. I also think that the IPO is probably designed to allow early investors in the company an easy way to exit their investment quietly.
 
McLovin said:
But you still have to cook whatever they drop at your door. I don't get the attraction of Marley Spoon.
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This was the point of my why - its an uncooked meal and as such would have very limited market appeal.

Marley Spoon is really just a grocery retailer of sorts...ill pass.
 
Offer price = $1.42
Current price on Day #2 of trading = $1.097

Not a good start for Marley Spoon.
 
Many years ago when AMP floated My Old man had 4000 issued to him as a long term client.
He asked me what to do with them. I told him to sell on open.
He did! $24.12 a share----the rest is history!
 
ubereats and menulog are examples of ready to eat deliveries, but they are limited in terms of which businesses work with them, in my area, for example, the choices atm are mainly fast-food style, if i want something "healthier" i either have to cook it myself or go out to eat it, or get it, meal kit models are going to appeal to time poor families who want to watch their nutrition, cooking takes time, sure, but it cuts out the time GETTING the ingredients together (recipes, shopping lists, etc) and that is a bonus, food is a pretty safe moat
 
Well, as predicted MMM has had a very rough time since listing in early July. It peaked at $1.36 in late July but has faltered since then. The share price started to collapse in late October following the release of its 3Q 2018 financial results which detailed an 11.186 million Euro loss in the quarter in spite of an increased marketing and advertising spend.

With only 17.613 million Euro in the bank at the end of September and an estimated cash outflow of 36 million Euro in the current quarter, Marley Spoon is facing an uphill battle to reach profitability as well as the prospect of another capital raising in the near future.

big.chart-MMM.gif
 
Marley Spoon has announced today that it has entered into a strategic partnership with Woolworths Group Limited.

From the announcement:
The agreement includes an investment by Woolworths that will provide A$30.05 million in funding to Marley Spoon. The investment comprises debt and equity, as outlined in further detail below.

The partnership will see both companies work collaboratively to grow the Marley Spoon brand and Dinnerly, Marley’s Spoon’s budget offering, in Australia, and to identify and implement operational synergies, with an initial exclusive term of five years.

Marley Spoon will benefit from Woolworths’ deep industry experience, with the ability to engage with its large customer base, as well as work with its sourcing and supply chain teams.

The partnership will allow Woolworths to gain valuable insights from Marley Spoon’s manufacturing, distribution and market experience in home-delivered meal kits as it looks to complement its current customer offering.
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Sounds like Woolworths will be flogging Marley Spoon products in-store. Well, it's the first good news MMM has had in a while so I'm sure the shareholders are a little happier today.

Marley Spoon is up 70.45% to 75c today.

big.chart-MMM.gif
 
greggles said" Sounds like Woolworths will be flogging Marley Spoon products in-store soon...
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- doesn't seem to be the case (six months later). MMM is down to 30c a share, so the WOW infusion isn't working any magic. Also (drum roll), WOW lent a further $4 million by way of Convertible Note in Sept 2019.

CEO founder and CEO Fabian Siegel said MMM would start sourcing products from WOW suppliers and distributors, use WOW Connect logistics to distribute meal kits interstate, advertise on WOW store digital screens, online and in their magazine and market to Woolworths Reward loyalty card members. Siegel sees these benefits flowing through in 2020.

Marley's Australian sales rose 50% in Dec quarter, customer numbers rose 56% to 68,000 and number of orders rose 54%.
The strong performance from Australia helped Marley Spoon lift total revenues by 23 per cent in the December quarter and by 41 per cent to €129.6 million ($A212 million) over the year, exceeding the company's 35 to 40 per cent guidance. Lower marketing and customer acquisition costs boosted contribution margins, enabling Marley Spoon to reduce December quarter losses to €2.4 million ($A3.9 million) compared with a loss of €8.6 million ($14.03 million) in the previous fourth quarter.

Mr Siegel reaffirmed the company's guidance to be EBITDA positive by the end of 2020. "We believe that 2019 was an important year as the Australian business showed us what this business should look like," Mr Siegel said
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So, We're the guinea pigs for some European dream?
"We are in the early stages of a five-year strategic partnership with Woolworths and the growth opportunities and operational synergies from this collaboration have only just begun," he said. Marley Spoon expected to see similar improvements in the US and Europe after investing in infrastructure including manufacturing facilities
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The meal kit market is worth more than $300 million in Australia and grew about 40 per cent last year, according to Nielsen. Meal kits currently account for less than 1 per cent of the food and grocery market but the sector is expected to continue to grow, according to a recent UBS report, taking fresh food sales and foot traffic away from supermarkets. "Meal kits challenge the traditional supermarket model, with fresh ingredients for each night's meal delivered weekly," UBS said.

As a result, most major grocery retailers in Australia and overseas have announced partnerships with or have acquired meal kit businesses, or have increased their range of meal kits in-store.
https://www.afr.com/companies/retai...rs-soar-after-woolworths-deal-20200129-p53vxd

- having now been exposed to Marley Spoon, I think it's fair to say it suits some people (1 percent, perhaps?). The model is 30 minute prep, no waste, easy to follow but freshly prepared meals. It is not a microwave alternative, that's "Light n Easy" or WeightWatchers, or the supermarket chilled offerings.

The usual demographic is; time poor, inner city professionals. I would add another, and that is, two-person households not into food waste, but want to cook interesting and varied wholesome (fresh) food. The meal offerings are complete and there's no cling-wrapped back of the fridge stuff to forget and, later on, throw out. Each offering is well proportioned. The issue is packaging; SUP. Everything is wrapped and sealed and this is wasteful. And another: Supermarket carparks are not necessarily the easiest or friendliest places; home delivery after selecting the meals allows for less decision making.

End result. It's another service offering that is semi-efficient (weekly ordering in advance allows M/S to manage supply issues) but involves freeze or chill packs in cardboard boxes and delivery to the door. Woolworths see it as a threat enough to take a stake, get involved in supply and sourcing logistics, with obvious benefits for WOW (with their economies of scale) and also have a 'peek under the bonnet'. Take out later or see it out or learn something from web-based, data rich KYC Meals-as-a-Service.

Ah, creative destruction.
 
I'm pretty bullish on MMM for the Feb stock tipping comp. Recently released what seems to be a good quarterly activity report that was well received my the market. Interim results out late Feb so hoping their recent activity translates into a solid Feb of gain.
 
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