The soda and snack giant said Tuesday that it has hooked up with online meal kit marketplace Chef'd to deliver three Quaker Oats-branded meals, all featuring the brand's trademark oats as the star. People who order the Quaker Oats-inspired meals receive all the necessary, pre-portioned ingredients and step-by-step instructions for making the meal. The meal kits, which will cost $10 for a serving of two, will also include a mason jar as well as additional oats-inspired recipe cards.
The partnership is keeping with PepsiCo's stepped up efforts to get people to think of Quaker Oats ((a subsidiary of PepsiCo) as a dinner food, not just something relegated to a bowl in the early morning hours before work.
"Quaker Oats is now starting to appear in forms that are so different than our journey 10 years ago," Mehmood Khan, PepsiCo's vice chairman and chief scientific officer, told TheStreet in an interview last year. So far, the efforts by PepsiCo to broaden Quaker Oats' appeal have had mixed results. For the 36 weeks ended Sept. 3, organic sales for Quaker Foods North America fell 0.5% from last year to $1.74 billion. Operating profit for the division rose 20% to $456 million, however, on the back of productivity improvements and lower raw material costs.
TheStreet visited PepsiCo's test kitchens last year. Here, Quaker Oats used for dinner
PepsiCo joins a growing list of big food makers venturing into the meal delivery space -- dominated by the likes of Blue Apron and HelloFresh -- in order to cater to time-starved consumers who don't like walking around supermarkets. Candy maker Hershey (HSY) - Get Report has also joined forces with Chef'd, and in September launched dessert kits on Facebook Live. Campbell's Soup (CPB) - Get Report is using Peapod to deliver meal kits that could help someone make a curry sauce from its condensed cream of mushroom soup and a few other basic ingredients.
Without question, there is an opportunity for PepsiCo and others in big food to make some headway with meal kits. Only 3% of U.S. consumers have tried a meal kit before, according to a recent survey by NPD Group.