Local Crate

Market position

Local Crate operates in the U.S. meal-kit category, which a 2018 report cited on the Upside podcast sized at roughly $5 billion in America, with Blue Apron at about 35% share and HelloFresh (which acquired Green Chef) and its combined brands at about 36%. Local Crate positions itself as a regionally sourced alternative to these nationally centralized players, aiming to compete on freshness and shorter distribution distances rather than on speed of national scaling.

The company sources ingredients locally by growing region and partners with award-winning local chefs, farmers and makers, rather than shipping from centralized national facilities. Management has cited reduced shipping distance and packaging (up to 80% less than nationally delivered services), improved freshness, and giving back to local hunger relief programs as points of distinction.

Technology

The company describes itself as an online, direct-to-consumer platform through which customers order weekly meal kits, combined with a localized supply chain and regional distribution designed to shorten delivery distances.

Go-to-market

Customers subscribe and order online for direct home or office delivery. Market entries are paired with locally recognized chef partnerships, such as the Illinois launch menu created by Chicago chef Zoe Schor. The company also planned distribution through national retail outlets.

Consumers who want to cook balanced meals at home with pre-portioned ingredients while saving time and reducing food waste, including households interested in locally sourced food and supporting local producers and hunger relief efforts.

Geography

Founded and operating in Minnesota, with the founders based in the Twin Cities area (Chanhassen/St. Paul) and a shipping radius stated in 2017 to reach 77% of Minnesota's population. The company launched service in Illinois in April 2018 and said additional markets were planned.

History

Local Crate shipped its first crate to Minnesota subscribers in November 2015. In 2017 it was one of 10 startups selected for the three-month Techstars + Target Retail Program, and the founders also cited participation in a Techstars Food+Tech program at Land O'Lakes and the MN CUP competition. In April 2018 the company announced a $1.4 million seed round and simultaneously launched service in Illinois, while also expanding its executive team with a chief marketing officer and a vice president of operations.

Risks & controversies

Industry commentary cited alongside the company notes that meal-kit customer acquisition costs are high relative to customer lifetime value and that major players such as Blue Apron and HelloFresh were not profitable, while Blue Apron's share of the U.S. meal-kit market declined from about 46% in February 2017 to about 35% in 2018. The company's founders also identified establishing local product distribution relationships as a significant operational hurdle.