People who don’t live near a Kroger store can enter by tagging their favorite retailer “to tell us where we should show up next,” Drori said. “We’re asking people how they’re stepping into their ‘fruit and vegetable era’ on TikTok and Instagram,” Drori said - with hopes the user-generated content will feature posts from Kroger’s freezer aisles. Winners will also receive $1,000 for their travel expenses. The company purchased a VIP suite on the final stop of Swift’s Eras tour in Los Angeles, and is giving away 10 sets of two tickets to customers who purchase or engage in the Kroger launch. To promote the company’s first official retail launch, the company is investing in multiple paid and organic marketing initiatives – headlined by Taylor Swift tickets contest.
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Kroger shoppers can scan a QR code that prompts a $5 donation by Daily Harvest to those organizations on behalf of the shopper.ĭrori said the company is in talks with other retail buyers, but is currently intent on “making the Kroger launch a success.” The new packaging will also feature the company’s mission to support farmers through partnerships with the American Farmland Trust (AFT) and California Certified Organic Farmers (CCOF), Drori explained. “We also added important information to differentiate us from some of the clutter in the freezer aisle,” she said. The Daily Harvest products will be featured together in a brand block in Kroger freezer aisles. “We made subtle changes, things like calling out the collections in large letters,” Drori said, with large letters like “C” and “S” signaling Daily Harvest’s cups and smoothies products. This prompted the company to tweak its labels, to help better explain what the products are to customers opening the freezer doors. “We knew it was a different type of channel and there is a lot more we have to explain quickly,” Drori said. With this new direction, Daily Harvest also underwent packaging design changes in time for the Kroger launch. She also confirmed the company has since resumed its growth trajectory, adding “we’re acquiring customers back at the rate we were.” “ is not something we’re focused on as we head into this new era of the business,” she said.ĭrori reiterated that customers’ safety “is always our top priority,” with the company having ceased sourcing from the responsible supplier last year. The selected SKUs going into Kroger, which include bestsellers like the artichoke & spinach flatbread and mint & cacao smoothie, were based on customer data.ĭrori said that with this launch, the company has a forward outlook on growth following last year’s recall headlines. “We plan to have more variety of items in DTC than in grocery stores,” Drori said.
DTC will remain important for Daily Harvest, especially when it comes to targeting convenience-minded customers. The in-store availability is also a way to reach customers already familiar with Daily Harvest, said Drori, “but weren’t willing to purchase us in our DTC format.” The company had plans to transition to an omnipresence in 2020, but those plans were disrupted by the onset of the pandemic. “Ultimately, we thought it was time to be where customers need us to be and where they’re already shopping,” Drori said. With the Kroger launch underway, this week Drori told Modern Retail that the grocery chain was a natural fit for the brand’s products, and will help Daily Harvest quickly gain wide brick-and-mortar distribution across many states, following exclusive availability through its website.
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Over the years, the company raised about $120 million in venture capital Its $77 million Series D round in 2021 brought its valuation to $1 billion. Prior to that, Daily Harvest was tracking as one of the fastest-growing food startups - generating $250 million in revenue in 2020.
In June the company’s founder and CEO, Rachel Drori, unveiled its new retail plans after spending the past year responding to customers’ recall issues. With new packaging and a splashy marketing campaign featuring Taylor Swift tickets giveaways, the company says it’s “entering a new era.”
According to Daily Harvest, the Kroger entry marks a new chapter for the company as it sets out to compete in the freezer aisle that’s historically been dominated by legacy food brands. The launch follows a series of headwinds for the company over the past year, which includes layoffs and a recall of its French Lentil and Leek Crumbles, which reportedly caused 133 customer hospitalizations.
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