Woolworths has signed a $30 million exclusivity deal with Marley Spoon in the hopes of tapping into a growing appetite for ready-to-cook meal subscriptions.
The supermarket giant said on Friday its initial five-year agreement includes the purchase of $7 million Marley Spoon shares, meaning it owns nine per cent of the German-headquartered company and can directly participate in the growth of its Australian offerings.
Marley Spoon told the ASX it will benefit from Woolworths' deep industry experience, large customer base, and would work with the supermarket's sourcing and supply chain teams.
Marley Spoon's ASX-listed shares nearly doubled on Friday to a peak of 80 cents, before easing slightly to 73 cents at 1300 AEST.
"As grocery spending shifts to online, home-delivered meal kits will play an increasingly large role in helping consumers create healthy weeknight meals and save time," Marley Spoon chief executive Fabian Siegel.
Woolworths Group CEO Brad Banducci said the deal aligned with the company's ongoing goal to provide healthy and convenient meal solutions.
Woolworths shares dipped in the minutes after the announcement but were still up 0.29 per cent for the day at 1337 AEST.
As of March 31 Marley Spoon had more than 190,000 active global customers across both the Marley Spoon and Dinnerly brands.
