Now more than ever, Canadians crave convenience and customization when it comes to their meal options. Whether their nutrition preferences have to do with fitness goals, allergies or their lifestyle, dinner time is decidedly no longer a one-size-fits-all approach.
That’s where Factor, a ready-to-heat meal delivery service that launched in Canada earlier this month, comes in. The U.S.-founded company has been in operation since 2012 and was acquired by HelloFresh in 2020.
Factor caters to a variety of nutritional and dietary needs, ranging from vegan to calorie-smart to keto-friendly. Protein options are free from antibiotics and meals do not include refined sugar or oils. Weekly rotating menus are chef-made and dietician-approved.
But the strategy to bring Factor to Canadians needed to differ from that of the U.S. market – one that’s more mature in terms of familiarity with the ready-to-heat category. “Factor is Canada’s first clean-eating ready-to-heat meal delivery service that will be available nationwide,” says Bart Molenda, CMO at HelloFresh Canada.
Aside from a proper introduction, Molenda says Canadians are also behind on shipping capabilities for fresh meals. “The U.S. has been noticeably years ahead in its ability to ship anything and everything across the country at amazing speeds,” he says. “Historically, Canada has been behind in its delivery capabilities, particularly with cold storage and timing for delivery,” he says.
To mitigate this, Factor has optimized how it delivers its meals by manipulating temperature control, streamlining its supply chain management and introducing methods of keeping its customers informed as to when their boxes will arrive.
For its launch, Factor is relying on media and influencer relationships, digital advertising, SEO, organic social media, referral and sampling. “But mainly, we’re seeing a lot of pent-up demand for a high-quality, fresh, ready-to-heat product,” says Molenda, noting that in its initial beta launch, the company saw a fair amount of organic momentum and word of mouth being driven by customers – something the company is also hoping to capitalize on.
Besides the main differentiators – meals that go from fresh to cooked without having to chop a single vegetable, and that speak to a wide range of fitness and lifestyle goals – Molenda also believes that because Factor is already heavily established in the U.S., that prior knowledge and experience will serve the company well. “We’re able to utilize their best recipes and practices to provide Canadians with the most premium offering available,” he says.
Another unique quality that Factor has implemented is its packaging – either microwaving or cooking in the oven are safe bets. This broadens Factor’s audience to include those who either don’t use the microwave for health reasons, or perhaps don’t have access to one.
And of course, working within HelloFresh’s well-known system makes for easier integration. “We can take advantage of HelloFresh Canada’s optimized food and assembly control, delivery processes, supply chain, vendor relationships and customer service, meaning Canadians can depend on us,” says Molenda.
Some negative feedback from other meal-delivery service companies includes that packaging is not sustainable – either the materials are non-recyclable or non-compostable, or there’s just too much of it. To this, Molenda notes that all pieces of packaging are carefully selected and essential to maintain the freshness and quality of its products – nothing in the box is extra.
He adds, “In 2020, HelloFresh Group became the first global carbon-neutral meal kit company, offsetting 100% of its carbon emissions from operations, and it’s determined to deepen its efforts to reduce emissions at source, across its value chain.”
As of 2021, Factor became the largest ready-to-heat meal company in the U.S. Since being acquired by HelloFresh, the company has seen a compounded annual revenue growth of more than 100%, according to Molenda. “Our research shows a market potential of $162 billion USD ($221 billion CAD) globally in the ready-to-heat category, and so we know there is a demand for this product in Canada,” he says.
Factor’s rollout begins in Ontario and will reach the rest of the country within the next few months.