HelloFresh: Case Study on Sustainability, Growth, and Challenges

This report presents an integrated case study analysis of HelloFresh, a meal kit delivery service. It examines the company's business operations, particularly its sustainability challenges, including the use of plastic packaging and the need for carbon offsetting. The study explores the impact of the COVID-19 pandemic on HelloFresh's growth and the strategies the company adopted to maintain its competitive advantage, including expansion into new markets and the acquisition of Green Chef. The report analyzes HelloFresh's competitive position, its response to the pandemic, and its sustainability initiatives, such as carbon offsetting programs. The case study also reviews the history and growth of HelloFresh, its competitive landscape, and the changes implemented due to the pandemic. The analysis highlights the importance of addressing customer concerns about packaging and the need to balance growth with environmental responsibility. The report concludes with proposed solutions to the identified problems, aiming to help HelloFresh achieve long-term sustainability and success.

Integrated Case Study
Analysis

EXECUTIVE SUMMARY
The respective report is based on the HelloFresh. It is a business firm which is performing the
business functions of delivering the meal box to their customers. The below mentioned report is
dealing with the evaluation of issues which are being faced by the management linked through
the maintaining of sustainability and acquiring of future advantages. For the purpose of
overcoming from the issues faced by the organisation, several of efforts have been given by the
management which also help them in gaining the competitive advantage as well. In order to
attaining the global edge, the respective business organisation is performing their functions
through following multi dimensional efforts as they are performing business operations in all
over the world.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
CHAPTER 1: Introduction to case study.........................................................................................2
Statement of the problem ...........................................................................................................2
Research aims and objectives......................................................................................................2
Structure of the rest of the report ...............................................................................................2
CHAPTER 2: Case Brief: Description of the situation...................................................................3
CHAPTER 3: Problem statement, plan of analysis and literature review ......................................3
CHAPTER 4: Analysis & Findings.................................................................................................6
CHAPTER 5: Proposed solution to problem...................................................................................8
References:.....................................................................................................................................11
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CHAPTER 1: Introduction to case study
Statement of the problem
The primary issue or problem which is identified from the given case study involve the
challenges which have faced by the management of HelloFresh in order to maintain the
sustainability in the functions and operations of organisation (Li and et. al., 2021). The respective
business firm face the issue by the use of huge amount of plastic which is being used in the box
of HelloFresh and these boxes are shipped to the several countries. The management is following
the carbon offsetting programs but they are doing struggle to identify the more measures,
through which they can protect the environment. One more issues, which is faced by the
company is the maintaining of sales of organisation after COVID-19 pandemic.
Research aims and objectives
Research Aim
To identify the significance of meal kit home deliveries during global pandemic COVID-
19. A study on HelloFresh
Research Objectives
 To understand the history and growth of HelloFresh
 To determine the competitive position of HelloFresh
 To evaluate the changes adopted by HelloFresh due to outbreak of global pandemic
COVID-19
 To examine sustainability level within HelloFresh
Structure of the rest of the report
Introduction: It is a primary chapter which include the aim and objectives related to the
study and the problems which are being determined in the given case study.
Description of the situation: It is the second chapter which include the detailed
description of the situation included in the given case study.
Plan of analysis: it is also an essential chapter which provide the secondary information
which will provide the answer of each and every question of research. It also deals with the
theories, models and concepts related to the case study.
Analysis and findings: It involve the proper evaluation along with the analysis which is
totally based on the information gathered through the chapter of literature review.
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Proposed solution to the problem: This chapter comes at the end of report which provide
the focus on providing the recommendations which are related to determining the case study.
CHAPTER 2: Case Brief: Description of the situation
The given case study is majorly focusing on the impact of COVID-19 pandemic over
business of meal kit industry. The HelloFresh company started their business operations recently
and they beat the other competitors available in the market. They also expand their business
operations in more than 14 western countries along with improving the range of products. The
acquisition of Green Chef assisted HelloFresh to focus over sustainability. The respective
business organisation has put several efforts for the purpose of focusing on the sustainability
(Kombanda and et. al., 2022). The management of HelloFresh is required to focus on the issue of
customers over excessive packaging. The COVID-19 situation work as a huge opportunity for
the HelloFresh. The respective business organisation have to develop the strategies in order to
remain sustainable in their business operations. They are also making focus on offsetting carbon
emission through doing investigation in sustainable projects such as the Farm Biomass Project in
Canada and Yarra Yarra Reforestation in Australia.
CHAPTER 3: Problem statement, plan of analysis and literature review
Problem Statement
the given problem is related to maintaining the sustainability in the organisation. It has been
found that the the clients of HelloFresh are not happy because of the use of plastic box for the
purpose of packaging the meal kits. Several of people are doing complaint regarding the same as
they do not want to use plastic to keep their food (Dannenberg and et. al., 2020). The HelloFresh
is required to work on retaining their existing customers along with attracting the new customers.
It is consider as the major challenge for the management to focus on the respective issue. This
imitative will work effective in all the markets, where HelloFresh is working.
Plan of analysis
The investigation is being performed through the secondary qualitative and quantitative
information. In order to do the evaluation and examination, the information is arranged in precise
and systematic ways.
Literature Review
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History and growth of the HelloFresh
According to (Andonova, Anaza and Bennett, 2021), HelloFresh is a famous and most
popular online grocery organisations. This start up was established by combining ambition and
desires of two most dedicated businessmen. The Dominik Richter had founded the HelloFresh.
He is CEO of the respective company who was graduated from London School of the
Economics. This graduate person had an ambition to become a big entrepreneur. He was inspired
by the Swedish organisation. Scandinavian had sent its customer the pre packaged ingredient on
weekly basis according the matching recipes. Richter always curious to test that whether this
selected business model is efficient to catch on beyond the Nordics. Jessica Nilsson, Thomas and
Rochter had co founded the HelloFresh. Their business model is mainly focused on delivering
the meal box with pre- packaged ingredients as these ingredients are used to make the meals
more delicious. Thus, this organisation has gained a high success as it is operating its business
only after 40 days of the founder's meeting. Now HelloFresh is active within 6 German cities and
five nations.
HelloFresh's competitive position within market
As per the (Chan, Gao and McGinley, 2021), it is expected that, meal kit organisation
always provide good and healthy food which are perishable in nature. It require seasonal
ingredients and customer's appealing taste. It is essential that there should be a flawless
communication between suppliers and fulfilments centre. It is dependent upon forecasting ability
of the customer needs or demand in regard to the grocery boxes. HelloFresh is a master in such
operation as company perform with an operational infrastructure. HelloFresh is capable to
forecast the business demand so that a proper arrangement of the food supply can be established.
To perform the business operation perfectly, respective company uses its website activity, survey
and also consider the customer's feedback. By this initiative, respective company can maintain a
competitive and reputed positive of itself within market place.
Changes adopted by chosen organisation due to outbreak of world pandemic COVID-19
According to (Oppong, Dadson and Ansah, 2021)., due to pandemic outbreak, a large
number of the business or companies get shut down. As government has announced guidelines
regarding social distancing and complete lock down had take place, then various business, get
into a high loss and they have to close their business. The government restrictions has also
change the customer's behaviours , as resulting they start to cancel their trip and stop to visit the
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grocery store or other supermarkets due the risk of virus. In this circumstance, a high demand for
the meal kit took place, due to which HelloFresh get an opportunity to deliver more and more
order of food. It enhance company's sales and also increase their profitability. During 2020,
respective organisation has deliver around 260 million meal box to customer. Thus, it has been
observed that meal kit sector gain a great success during COVID 9 and even in post pandemic,
they has created a mind set among the customers that they are offering the food at customer's
home.
HelloFresh's sustainability level
According to (Gopakumar, Suresh, and Dutta, 2022), it is identified that the considered
firm is practising to impact the society in a positive way by providing an opportunity to every
individual to take benefit of their tasty and delicious meal. HelloFresh has build few mission or
objectives to attain the sustainability. Its budged focused practices help its customer in saving
their money on each order. Other mission of this company is related to health in which its health
focusing practice offer most healthier or full of nutritious food to the consumers. Along with this,
this company has also aimed to offer tasty food to each and every individual by offering a large
variety of the food. At last, its main mission is to establish a sustainability. This aid a beneficial
and better ecosystem that decline the negative impact on surrounding. This is that how the
considered firm is focusing to address all the challenges and issues related to the food wastage in
entire world. Various forecasting methods has been adopted by the respective company as these
methods help them in predicating exact need for each recipe. By this the food wastage will be
lowered by a high level. To attain the sustainability goals, respective organisation take initiative
to lowered and track the carbon emission per mead by following UN Sustainable Development
Goal. Thus, respective firm has commenced to take initiatives that support the carbon offsetting
programs.
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CHAPTER 4: Analysis & Findings
From the above analysis, it is examined that HelloFresh face a lot of challenges when
taking new initiatives in its business. It has also planed to make few major efforts or strategy so
that its business sustainability can be developed in order to reduce the different issues.
HelloFresh is a well known meal kit firms across the world that has follow a fast paced growth
strategy. German food delivery has undertake numerous value chain as they want to establish
their business within 14 countries without any obstacle. This company has also face criticism in
its meal packaging as company's aim is to manage its sustainability in its work process. In
pandemic, it is observed that company's sale was boosting as customer ordering continuously for
meal, but at the same time individual also avoid the infections in their homes that could be
spread through utilisation of the plastic (Kumar and Kumar Singh, 2021).
In 2020, HelloFresh practice to perform its business functions with a sustainability with
the purpose to handle the staff competition within market place. During COVID 19, it has be
identified that respective firm has faced different obstacle in operating its business effectively. It
is because company has only limited resources due to which, it become difficult for them to meet
its customer hunger needs. As government has implemented various restrictions in pandemic,
due to this, company face various problems in reaching to its customers. In post COVID,
HelloFresh has practice to maintain its focus on sustainability activities for a long time period.
Still, this firm is supplying its make kit with a plastic packing which is a major issues for
HelloFresh. To handle this issues, respective company need to use the carbon offsetting
programs.
As the company deliver perishable food to its customer which can create an issue for
them. But respective company has promise to its customer that they will deliver same in tact
position so that customer can consume their meal without facing any problems (Lim, 2021).
HelloFresh has forecasted demand for the meal boxes so that food supply can be arranged
effectively. Various organisations like Tesco and Walmart are giving a tough competition to
HelloFresh. Therefore, to compete with this market competition, respective company is putting
their constance efforts so that they become enable to enhance their market share. Company has
expanded its market within 7 German cities along with 5 international market. Within 2 years,
this firm has reaches from 0 to 100 employees growth. It has also entered its services or product
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range with different brand during 2015 to 2020. Its presence has take place within Denmark,
New Zealand, Canada, Switzerland, Belgium and various nations.
Nowadays utilisation of the internet and technology has increased day to day as there is
around 62% increment in internet user. It impact the business function of HelloFresh positively
as customer order their meal through the online system and then respective company deliver their
order. In modern era, customers prefer to purchase the food or other thing through online portal
as it provide a free experience to them (Mahajan and Dureja, 2021). Thus it is a favourable
situation for the respective company. It is analysed that changing behaviour of the retail or
grocery industry like HelloFresh is getting a positive attitude in term of the pre-packaged food. It
is observed that there is a great increment in customer of respective company. In pandemic
HelloFresh has gained a high level of success during this time period, it has delivered near about
260 million meal throughout the world that enhance company's profitability as well as revenue
generation. Thus, it can be said that during Pandemic, company become enable to create
customer's mind set due to which, its business gain a high success.
Mission statement of the HelloFresh is to acquire a long lasting sustainability for their
business that it become easy to exert a positive impact over organisation as well as the society
(Mayer, 2022). Therefore, to establish this mission successfully, respective company is making
efforts to provide healthy and delicious food to customer so that customers can get enjoy the
food. By this, the customers who are concerned with the cost has also enjoy the tasty food on a
low cost. Other objective of the respective firm is to deliver more healthy and full of nutritious
food si that company's sustainability can be maintained in most effective manner. HelloFresh has
mainly emphasized to address the wastage issue in which this organisation has adopted the
forecasting methods. Chosen company has identified that within food industry, food wastage is a
major concerned which need to be mitigate by undertaking different efforts or practising.
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CHAPTER 5: Proposed solution to problem
The HelloFresh is engaged in providing the meal kit to its customers so that the food
requirement of its customers can be met efficiently. The respective company is facing challenges
of sustainability and waste management as this firm is supplying the meal kit in plastic container.
Thus, this material is not good for the environment and also create issue of the carbon emission
that create an issue for this company (Plata. and et. al., 2022). In order to reduce the carbon
emission, HelloFresh started to use the recyclable packaging material that also help the company
in maintaining its sustainability. It is identified that respective company is paying emphasize on
reducing its contribution in emission logistic as it use the recycling journal that reduce the gas
emission by 33%. HelloFresh packed its every meal item individually which is a major concern
of its customers. As various people think that the plastic packaging in food is impacting their
health and also not safe for the environment as well, so, in 2018, respective company has
broadened its sustainability measures through acquisition of the Green Chef.
In recent time, HelloFresh is considered as most sustainable kit within respective industry
as it has put its efforts in order to developing the sustainability and also using the optimal value
chain in its business. With the purpose to minimize the carbon emission, HelloFresh is suing the
green certified renewable energy source along with this, respective company also initiating the
plastic offsetting programs (Stride and et. al., 2021).To live the company's mission for a long
time period respective firm has declared that it will offer the carbon neutral meal kit so that they
can make a contribution in reducing emission of the carbon. As compared to the other rivals,
HelloFresh is one of the company who publicly support the offsetting programs. Their general
sentiment related to this plans is to eliminate risk of the complacency and also avoid their real
effectiveness.
In order to fulfil the hunger need of customer, HelloFresh has expanded its business
within 14 different nations. As this company is working for making the greater stride in a
sustainable measure, so, HelloFresh is becoming extra cautions for their packing that enable
them to receive a truly edge. In COVID 19, respective company get an opportunity to provide
more hygienic or fresh meal box to customers. For this, HelloFresh has adopted several packing
measure for every single ingredient. For its herb product, firm has start suing the thermoforms.
Whereas for its other fragile item or egg, organisation has undertake a moulded paperboard.
Respective firm has considered the PP cups with he foil lids most suitable for its dairy product
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as it can easily manage the goods perish-ability. By adopting such practices, HelloFresh become
capable to eliminate the negative impact from its business in order to establish positive
outcomes.
HelloFresh is also facing difficulties in managing its business operational as due to
COVID 19, company has not enough resources that it can fulfil its customer high demand.
Therefore, respective company lacked in meeting this increased demand. Theretofore, to manage
this situation, HelloFresh has used different operational tool in business with the aim to attain its
business function without any problem. This company has take use of the prominent supply
chain as it enable the organisation to manage its all resources in most suitable and appropriate
manner (Wen and Liu-Lastres, 2022).To aligned the supply and demand of meal requirement,
company is monitoring the ingredients in effective manner. Various sustainable packaging
initiative has been taken by the respective company which are designed with a light cardboard so
that its marketing positioning can be managed effectively.
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References:
Books and Journals
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COVID-19 changed operations. International Journal of Contemporary Hospitality
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Dannenberg and et. al., 2020. Digital transition by COVID‐19 pandemic? The German food
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Industry During COVID-19 Era. In CHANGING FACE OF E-COMMERCE IN ASIA
(pp. 277-293).
Kombanda and et. al., 2022. The Impact of the COVID-19 Pandemic on Young Australian
Adults’ Food Practices. Current Developments in Nutrition, 6(3), p.nzac009.
Kumar, P. and Kumar Singh, R., 2021. Strategic framework for developing resilience in Agri-
Food Supply Chains during COVID 19 pandemic. International Journal of Logistics
Research and Applications, pp.1-24.
Li and et. al., 2021. Meal Kit Preferences during COVID-19 Pandemic: Exploring User-
Generated Content with Natural Language Processing Techniques.
Lim, S.H., 2021. Promissory shock, broken future: COVID-19 and state-led speculations in
biotechnology and pharmaceutical industries in South Korea. Applied Geography, 136,
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Mahajan, H. and Dureja, R., 2021. Survival Strategies during COVID-A Case of Stellar Hotel.
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Sustainability (ICEIL 2020), Bharti Publications.
Mayer, V., 2022. Essential. Popular Communication, pp.1-7.
Oppong, J.R., Dadson, Y.A. and Ansah, H., 2021. Africa’s innovation and creative response to
COVID-19. African Geographical Review, pp.1-18.
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pandemic: A cross-country analysis. International journal of gastronomy and food
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Stride, M. and et. al., 2021. The effects of COVID-19 pandemic on the UK construction industry
and the process of future-proofing business. Construction Innovation.
Wen, H. and Liu-Lastres, B., 2022. Consumers' dining behaviors during the COVID-19
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