Oddbox is a “wonky” veg box business operating in London which has seen 400% growth in sales last year. They have just completed a £3m fund-raising round from Northern Venture Capital Trust Funds run by Mercia. Food Strategy Associates undertook the commercial and operational due diligence.
Oddbox’s focus on reducing food waste and delivering in a sustainable way has resonated with consumers and given them favourable economics. “This is a strong e-commerce business built on a solid consumer proposition.” said Ian Coulter, partner at Food Strategy Associates.
Home delivery businesses, such as veg boxes, are growing rapidly as consumers switch to on-line (especially since COVID-19). The underlying economics of these kinds of businesses are very different from traditional food manufacturing or retail businesses. Customer acquisition and churn, delivery costs and long-term market potential can all affect the value of the business, whether it is a start-up or at scale, and getting these right is essential to win in the market.
Food Strategy Associates is Europe’s leading food and food packaging focused strategic management consultancy and one of the pre-eminent providers of due diligence, strategic transformation and structural change to industry participants and investors in the sector. FSA consults across the entire food industry value chain, as well as having specialist knowledge in complex and emerging areas such as plant-based foods, food packaging, retailer brands, co-manufacturing and home delivery.