HelloFresh Case Study: Analyzing Sustainability and COVID-19 Effects

This integrated case study analyzes HelloFresh, a meal kit delivery company, focusing on the sustainability challenges it faces, particularly concerning plastic packaging, and the impact of the COVID-19 pandemic on its business. The report identifies the problem of balancing sustainability with operational practices and explores HelloFresh's efforts to address these issues through carbon offsetting programs and packaging adjustments. It reviews the company's history, competitive position, and adaptations made during the pandemic, noting a significant increase in sales due to altered consumer behavior. The analysis uses thematic analysis to assess qualitative and quantitative data, highlighting HelloFresh's sustainability goals, waste reduction strategies, and carbon footprint reduction efforts. Ultimately, the study aims to provide recommendations for HelloFresh to enhance its sustainability practices and maintain its market position in the post-pandemic era, offering valuable insights into the challenges and opportunities within the meal kit industry.

Integrated Case Study
Analysis

EXECUTIVE SUMMARY
The current report is based on HelloFresh which is an organisation delivering meal box to
their customers. In the current report the issues faced by the company have analysed which are
related with maintaining sustainability and acquiring future benefits. On the other hand, in order
to mitigate these issues the company is using differential efforts to manage their issues and to
gain competitive edge into the market. The company is having presence in different countries so
this is necessary that to use multidimensional efforts so that global edge can be attained.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
. CHAPTER 1: Introduction to the case study.................................................................................4
. Statement of the problem.......................................................................................................4
. Research aims and objectives.................................................................................................4
. Structure of the rest of the report..........................................................................................4
. CHAPTER 2: Description of the situation analysed in the case study..........................................6
CHAPTER 3: Literature review, analysis of plan and problem statement......................................7
CHAPTER 4: Analysis & Findings...............................................................................................10
CHAPTER 5: Proposed solution to problem.................................................................................12
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................16

CHAPTER 1: Introduction to the case study
Statement of the problem
The main problem determine in the current research is that encounters faced by
HelloFresh to sustain sustainability levels in their operations and roles. This administration has
faced backlash due to its practice of using high amounts of plastic used in HelloFresh Box and
these boxes are delivered to worldwide (Putri Pratiwi, 2019). Though, company is adopting
carbon offsetting programs however, it still has to come up with more measures so that they can
contribute in protecting environment as well as society. Another issue that HelloFresh faces is if
they will be able to maintain their sales post global pandemic COVID-19 or not. They have seen
rise in their sales during COVID-19 because of people's incapability of moving from one place to
another.
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 the first section that covers the aim and objectives of the investigation
along with the identified problem in the case study.
Description of the situation: The second section that provides in depth description of the
situation covered in the selected case study.
Plan of analysis: It is other significant chapter that accumulates secondary information.
This mainly focuses over addressing each research question. It also includes models, theories and
concepts included in the case study.

Analysis and findings: It is the section in which appropriate analysis and valuation is
done on the basis of information assembled in the chapter of literature review.
Proposed solution to the problem: This is the last chapter which focuses over giving
certain recommendations to the identified problem in the case study.

CHAPTER 2: Description of the situation analysed in the case study
The current learning focuses over impact of COVID-19 over the business of meal kit
industry. In the recent year 2020, HelloFresh has won the race in comparison of its different
competitors (Stević and et.al.,2020). The company expanded its operations and business in
almost 14 Western countries and increased its range of the product for fulfilling requirements of
more starving market sections, while keeping its accuracy and relevancy contempt the high race.
The procurement of Green Chef assisted HelloFresh to focus over sustainability. The
organisation has put excessive efforts in respect of sustainability. It has put great energies to
become the primary carbon-neutral meal kit organisation (Goddard, 2021). Thus, HelloFresh has
required to address main concern of customers over excessive packaging. The arrival of global
pandemic COVID-19 has created great opportunity to succeed and develop after many years of
hard work. Thus, global pandemic COVID-19 was an abnormal circumstance that unusually
created many opportunities for the business of HelloFresh. Therefore, in the current investigation
has focused over how HelloFresh has used different strategies to remain sustainable in their
business procedures and functions. HelloFresh has focused over offsetting carbon-emission by
investing in maintainable projects like the Farm Biomass Project in Canada and Yarra
Reforestation in Australia.

CHAPTER 3: Literature review, analysis of plan and problem statement
Problem Statement
The problem of the present investigation is to manage the level of sustainability by
carrying out its operations and functions. It is identified that company faces issue because its
customers do not like when they use plastic materials for packaging meal kits. Many customers
of HelloFresh have complaint that they do not want packaging of each product because it
increases the consumption and utilisation of plastics (Martins and Pato, 2019). Thus, this has
made HelloFresh to retain its existing customers and attracting new customers towards its
different offerings. Thus, one of the crucial challenges of HelloFresh is to remain focused on its
consumer’s main concern. It focuses over decreasing amount of using plastic and cardboard
packaging. The company has started monitoring packaging of ingredients within the boxes.
However, these initiatives do work in every market (Stock and et.al.,2018).
Plan of analysis
The present investigation is based upon secondary qualitative and quantitative piece of
information. Thematic analysis is used to inspect and measure the information in a systematic
and precise means. The main benefit of using thematic analysis is to assist in gaining relevancy
and exactness of theoretical piece of info (Udo and Ishino, 2021).
Literature Review
Background and success of hello fresh
As per the view of, HelloFresh is one of popular online grocery start-ups that is
established by combining desires and ambitions of two dedicated German businessmen. Dominik
Richter is CEO and founder of HelloFresh was very young and graduated from the London
School of Economics. This young graduate had ambition of becoming an entrepreneur. The
accomplishment of the Swedish organisation Linas Matkasse had enthused Richter in creating
start-up. The Scandinavian meal kit breadwinner had sent its consumers pre-packaged
components weekly as per the matching recipes. Richter was more curious in testing whether
their decided business model can fasten on outside the Nordics. Chief Executive Officer of
Rocket Internet, Oliver Samwer, a German internet organisation that capitalised and gestated in
connected startups. Later securing funds in November 2011, Richter, Thomas Griesel and Jessica
Nilsson had co-founded HelloFresh. Earlier called Jade 1314 in Berlin. The main focus of the
business model was to deliver meal boxes with ingredients that already packed. These

ingredients are castoff for creating and manufacturing delicious meals. Customer were requested
to use this facility by simply pledging on the site of the company. This company had seen great
victory and development because it has started its processes just after 40 days of founders'
meeting. The company is now active more than 6 countries of Germany along with five added
countries that are as France, Australia, UK and Netherlands (Vahidi, Torabi and Ramezankhani,
2018).
Hello fresh competitive position
In the view of, providers of suppertime kit are always anticipated to bring good that are
perishable in characteristic in faultless state. The recipes of the brand is mouth-watering in taste
for the buyers and the ingredient that they used are seasonal that are available in the local market
as well. An effective communication between the suppliers and the fulfilment centres were very
necessary. These all depends upon the forecast demand made by the buyers for the bakery boxes.
It was one of the organisations that has great talents in all the operations and they performed
extremely good under operational function of the business. HelloFresh has focused over
forecasting the demand of its business so that they can arrange their supply as per the demand of
their products. This company uses website activity, customer feedback and investigation. This
supports in smooth operative of the organisation and its several actions. In 2017, Amazon the
Logistics giant had extracted Whole Foods. They start operating their business in the same
market and sale their food kit. Another company like Publix, Walmart and Kroeger has also start
retailing meal kits in their outlets and supermarkets (Zhongming and et.al.,2021).
Variations accepted by HelloFresh at the time of global crisis of Covid 19 pandemic
According to the opinion of, eruption of global COVID-19 cause shut down of many
businesses permanently. The legal authority of the organisation was imposed various rules and
regulation that restrict the business to carry out their business. Some of the restrictions are as
social distancing and lock down. The fear of the virus has totally changed the behaviour of the
buyers. One of the impact was that the trips of the supermarket get lower down. Due to various
restriction, buyers are ordering more number to meal kit through online mode which has
enhanced the revenue and sale of the hello fresh in extensive manner. During the year 2020, the
number of consumers from 2.48 to 4.18 million of HelloFresh has increased in lot manner. By
the mid-2020, the company sale more than 260 million of meal all over the world. In simple
term, meal kit sector has gained more success in terms of revenue after the outbreak of the

pandemic. It is also analysed that the revenue and profits of the organisation even after global
pandemic has increased because it has created mind-set among people that they prepare their
meal at their home only.
Sustainability level within HelloFresh
In the view of, the main aim of HelloFresh is to impact the society in positive way by
providing each and every household the chance to get delicious and fresh food. One of the major
missions of the Hello fresh is to attain sustainability in large way. They also look for the budget
so that they can serve various buyers and can save money and time for each and every order they
deliver. Another mission is on focusing on health by offering nutritious and healthier meals to
the buyers. One of the effective missions of the company is to provide taste so that they can
acquire the chance of tasty food logo. It supports a healthier ecosystem that decrease the impact
on environment in negative manner. Thus, the company focused over addressing the issue of
food waste globally. They also acquired the method of forecasting in which they focused over
providing the recipe of the food in exact manner so that waste can be minimised. To attain the
goal of sustainability they also reduce their carbon footprints in large way in each and ever meal.
They also focus of the goal of UN sustainable development of carbon offsetting program.

CHAPTER 4: Analysis & Findings
From the discussion above, it can be concluded that HelloFresh is dealing with a variety
of operational challenges that are connected to implementing new features into the company. The
organisation also intends to make significant efforts to develop sustainability in their operation,
which is problematic. The company employs a rapid growth strategy and is regarded as the
leading provider of meal kits globally. In order to expand its operations into 14 countries, the
German meal delivery service uses a distinct value chain. Given that managing sustainability in
their processes is the organization's main goal, the corporation is receiving harsh criticism for its
packaging. The corporation is therefore facing a negative organisational factor as a result of
employing plastic in its packaging. Customers continued to place orders throughout the COVID
issue, increasing the company's sales, but they also wanted to avoid having diseases in their
homes that may be spread by the use of plastic (Malik, Mohan, and Annachhatre, 2020).
HelloFresh's primary objectives for 2020 are to ensure sustainability across all business
operations in order to effectively manage market competitiveness. It was noted that the
corporation had difficulties operating during the COVID period since it had to handle its
functions with finite financial and human resource resources. Due to limitations imposed by
several countries, the business has had difficulty connecting with and serving its consumer’s
demands (Liu and et.al.,2018). The company has continued to use these strategies in the post-
Covid era with the goal of acquiring sustainability over the long term. The main problem with
HelloFresh is that it uses carbon offsetting programmes even though the company still delivers
its products in a lot of plastic packaging.
The results of the analysis indicate that the food sent by HelloFresh is perishable in
nature, yet the company claims to provide it in that condition such that it may be consumed
without any problems. Forecasting box demand is another area of effort for HelloFresh so that
supply can be set up to meet demand. There are several formidable rivals for HelloFresh,
including Walmart, Tesco, and others. The company is working hard to increase its market share
as part of its ongoing efforts to manage competition. The firm is being actively managed in seven
German cities and five nations, including the UK, France, the Netherlands, and Australia. The
company has grown from 0 to 100 employees in less than two years. Between 2015 and 2020,
the company expanded its product line to include additional brands. Including their presence in

France, New Zealand, Sweden, Belgium, Canada, Switzerland, Luxembourg, and Denmark. In
Germany, there were vending machines in corporate buildings where you could get food.
The number of internet users has increased by 62% in the last decade, indicating that
more people are using the internet and other technologies, which has had a beneficial impact on
HelloFresh's company operations. The consumers are shifting towards ordering their food and
other need products online so that to gain haste free experience (Kovacova, and Lăzăroiu, 2021).
This is considered as the new attitude of grocery industry in which HelloFresh is gaining positive
attitude in terms of pre-packaged food. In the year of 2020, HelloFresh gas increased their
customers by 2.48 to 4.18 million. During the period of COVID the company has gained higher
success in which the company has delivered 260 million meals around the world. This has been
determined that the company continues to maximise their revenue and profits. It can be stated
that the business experienced greater success during the COVID-19 period because it was able to
change the way its clients thought about them.
The major mission of HelloFresh is to acquire sustainability in their business so that
positive impact over the society can be exerted. In order for the consumers to enjoy their food,
the business strives to serve them great and nutritious meals. In this way, guests on a tight budget
can still enjoy delicious food. The provision of wholesome food is HelloFresh's other goal,
which enables total sustainability to be maintained (Ghobakhloo, 2020). HelloFresh places a
strong emphasis on addressing the issue of wastage and has devised a system of forecasting.
According to an analysis by HelloFresh, food waste is a huge issue in the food sector, and the
company is using a variety of strategies to try to solve the problem.

CHAPTER 5: Proposed solution to problem
In order to easily meet their customers food needs, HelloFresh deals with the delivery of
meal kits to their clients. The business is dealing with problems with operations, waste
management, and sustainability. HelloFresh is delivering their meal kit to their customers in
plastic containers so that the company is facing issues of carbon emission. In order to manage
sustainability, the company is using recyclable packaging material so that minimum carbon
emission can be promoted. On the other hand, the company can also use recycling journal found
meal kit so that 33% lesser gas emission can be seen in their grocery meals. The business has
decided that because of these emissions, the logistical contribution is also reduced, thus it needs
to emphasise this (Geels, 2019). Customers' main concern is that each and every ingredient in the
meal kit is packaged separately. Many people think that due to plastic packaging these meals are
not safe for the health of individual and environment as well. In the year of 2018 the company
has broadened their sustainability measures by acquisition of green chef.
The company in current time has the most sustainable kit among the industry as right
from the beginning. HelloFresh has worked hard to build a sustainable business and use the best
value chain possible. The organisation uses green-certified renewable energy sources so that
carbon emissions can be reduced and plastic offsetting programmes can be started. In order to
live organisational mission, the company has announced global carbon-neutral meal kit so that
carbon emission can be minimised and at the same time sustainable development goal can be met
(Freudenreich, Lüdeke-Freund and Schaltegger, 2020). The company wants to get a competitive
advantage in the market by offsetting close to 50,000 tonnes of carbon dioxide and 24,000
megawatts of power. HelloFresh stood out from the rest of the pack as the only one to publicly
support carbon offsetting initiatives. These strategies aim to reduce the risk of complacency and
a lack of their true effectiveness.
Another problem HelloFresh is having is with its business operations. During COVID,
the company was unable to effectively meet customer requests because of high demand and
limited resources. This indicates that the corporation has implemented a variety of operational
methods to increase business function efficiency. In order to effectively manage all of their
resources, the organisation has implemented a well-known supply chain (Aagaard, 2022). The
business is also keeping an eye on its ingredients so that supply and demand are properly

balanced. In order to effectively manage their marketing position, the corporation has started
taking steps to ensure that its packaging is not made of thick cardboard.
The company has expanded their business in 14 countries so that in order to satisfy their
clients' hunger needs. The business is advancing its use of sustainable practises due to which
HelloFresh is now extra cautious regarding their packing so that truly edge can be received by
the organisation. After the arrival of COVID-19 the company has proved to get higher
opportunities within the market in order to provide fresh and hygienic meal box to their
customers. The company have adopted different packaging measures for their each and every
ingredient. For herbs the company is using PET thermoforms, the company uses moulded
paperboard for eggs and delicate commodities, and PP cups with foil tops for dairy products to
control perishability. By employing these skills, the corporation is able to control the detrimental
effects on their business, which is now producing beneficial outcomes for the organisation.
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APPENDIX
Illustration 1: Comparing HelloFresh and Blue Apron

Ill
ustration 2: International reach of HelloFresh Group

Illustration 3: HelloFresh’s financial results at year-end
2016-2019 and half-year 2020
Source: HelloFresh Group Year-End Financial Report 2016, 2017, 2018, 2019

Illustration 4: Types of packaging used for different categories of ingredients