Smithfield Foods invests $25 million in Chef’d; acquires sausage company
Smithfield Foods has announced a strategic partnership with an investment of $25 million in Chef’d, an ecommerce meal marketplace.
Smithfield Foods has announced a strategic partnership with an investment of $25 million in Chef’d, an ecommerce meal marketplace. Part of the Series B round of funding for Chef’d, this investment makes Smithfield the brand’s largest strategic investor and provides Smithfield a seat on the company’s board of directors.
With this investment, the companies will leverage Smithfield’s portfolio of brands for meal kit solutions across a variety of occasions. Chef’d will gain access to Smithfield’s product development and sourcing capabilities, and Smithfield will be able to innovate and learn using Chef’d’s direct-to-consumer model by tapping into real-time consumer insights and sales data. Chef’d will be able to leverage Smithfield’s national distribution network and facilities to expand its ability to serve consumers with next-day delivery services.
“This strategic partnership reflects our continued commitment to innovation—both in our products and how they are delivered to consumers,” said Kenneth M. Sullivan, president and chief executive officer of Smithfield Foods. “We’re able to expand our e-commerce capabilities and reach consumers looking for high-quality, stress-free meals.”
Other investors in Chef’d’s Series B round include Campbell Soup and Fresh Direct, which is making a follow-on investment to their Series A investment.
In other news, the company has announced the full acquisition of Kansas City Sausage Company, the leading U.S. pre-rigor sausage producer and processor. In 2013, Smithfield formed a 50/50 joint venture with the company. KC Sausage has operations in Des Moines, Iowa and Kansas City, Mo. In Des Moines, the company produces premium raw materials for sausage, as well as value-added products, including boneless hams. The Kansas City plant is designed for optimum efficiency to provide retail and foodservice customers with the highest quality products.