Delivered April 11th, 2019. Contributors: Josh T., Hellen O., Sumit B. and
Daily Harvest Company Analysis
Daily Harvest was founded by Rachel Drori through her personal endeavor to eat healthy on a tight schedule. A key aspect of Daily Harvest's growth has been funding round investments, the most recent of which amounted to $43 million. Below is the requested information about Daily Harvest's history, key marketing efforts, growth, target market, and public perception.
Daily Harvest interestingly originated as a personal endeavor, not a business one. The person who would later become the company's founder/CEO, Rachel Drori, "wanted to eat clean but didn't have time to recipe plan, prep and cook." On Sundays, she would create bags of vegetables and fruits and then put them in the freezer so that she would "have nutrient-packed smoothies ready-to-go throughout the week." Her friends heard about what she was doing and liked how effective and easy her method for clean eating was, so she began to send them the pre-packaged smoothie ingredients that she was making. According to Drori, "[w]ith that, Daily Harvest was born, making clean food accessible, easy and convenient, without compromising on nutrition or farm-fresh quality." Daily Harvest launched as a company in 2015. The company's founder, Rachel Drori, launched the company at the outset by using a commercial kitchen to package the ingredients. Once the ingredients had been packaged, Drori would load the packages into her car and personally deliver them to customers.
KEY MARKETING EFFORTS in the past two years
Daily Harvest's key marketing efforts within the past two years fall into three categories: (1) Instagram; (2) A pop-up store; and (3) Celebrity investors. First, Daily Harvest has heavily used Instagram throughout its existence as a company in order to advertise its brand. The company's CEO/founder, who has a marketing background, described the company's use of Instagram as a key marketing effort in stating: "Instagram has been one of our most fruitful channels. People eat with their eyes first. You see all the bloggers who have all the time in the world to create these Instagram-worthy foods and people get really envious of it, like ‘Great, I won’t have the time to do that.’ But actually, they do if they use Daily Harvest."
Second, this past year in 2018, Daily Harvest implemented a marketing effort involving "its first pop-up store." The store opened on November 14 in Manhattan as part of a marketing effort to attract new customers. The pop-up store was called the "Refueling Station" and provided free product samples, information about the company, and raffles, all in the style of a gas station located in Palm Springs, California back in the 70's. The company's founder/CEO said about the pop-up store marketing initiative: "This is meant to drive direct sales. The one thing we know about our customers is that they need to taste it to understand why it’s different. So we want to meet customers offline, and interact with them there."
Third, Daily Harvest's key marketing efforts within the past two years have also involved celebrity investors. In 2017, tennis superstar Serena Williams and actress Gwyneth Paltrow invested in the company as part of its Series A funding. Later in 2017, celebrity chef Bobby Flay, actress Haylie Duff, and Olympic snowboarder Shaun White also invested in the company. Celebrity chef Bobby Flay offerred high praise of the company in stating about his decision to invest: "I’m so impressed with Daily Harvest’s quality and approach to good living and healthful eating that I literally begged the founders to let me invest."
There were a number of key steps that occurred for Daily Harvest to grow from its startup status at launch to now being a prominent company. When the company was just getting started, its founder personally delivered all the orders herself when it was a local business. However, the company would later grow to a national business further strengthened by three key funding rounds from investors. The first funding round (seed) occurred on May 1, 2016, and included five investors (amount not disclosed). The second funding round (Series A) occurred on June 8, 2017, and included four investors (amount not disclosed). Two of those investors were celebrities Gwyneth Paltrow and Serena Williams. The third funding round (Series B) occurred on December 19, 2017, included six investors, and totaled $43 million. Three of the investors in that round were celebrities Bobby Flay, Haylie Duff, and Shaun White. Another key component of how Daily Harvest has grown into the successful company that it is today resulted from the "constant social media promotion" that its founder implemented.
According to Daily Harvest's founder/CEO, the company's target market is "anyone who wants to eat better without compromising the convenience of readily available foods. It works for the busy-bee or if you're just looking for more nutrients in your diet but are unsure where to start." Two notable subcategories within that main target market are "busy parents" and consumers of healthy breakfast foods and smoothies because those are the company's key products.
PUBLIC PERCEPTION OF THE BRAND & its PRODUCTS
To evaluate public perception of Daily Harvest as a brand and its products, we used the consumer review site Influenster because it includes both reviews and ratings from the public. On Influenster, Daily Harvest has a 3.8 out of 5-star rating based on 43 consumer reviews. While there are certainly more than 43 opinions out there about Daily Harvest, we included that ratings information as a representative subset of data from which to evaluate public perception of the brand and its products. Of those 43 reviews, 65% of consumers gave the brand a 5-star rating, 2% gave it a 4-star rating, 7% gave it a 3-star rating, 7% gave it a 2-star rating, and 19% gave it a 1-star rating.
Consumers also provided written reviews about Daily Harvest on Influenster. We read those consumer reviews as a means of evaluating public perception of the brand and deduced several important aspects of the brand's perception. First, many consumers talked about how convenient the company makes it to eat healthy. Second, multiple consumers discussed how expensive the products are and some even cited that factor as a reason for not re-ordering products. Third, numerous consumers talk about the flavor variety offered as a positive about the company. Fourth, some consumers lamented the company's bad customer service. Fifth, numerous consumers perceive the brand's products as being very fresh and flavorful.
Evive Smoothie Compay Analysis
Founded in 2015, Evive Smoothie produces organically prepared smoothies that do not require any blending. A Regular pack contains 12 breakfast smoothies at the cost of $48 per delivery. One advantage of Evive’s smoothies over its competitors' is its ease of preparation.
Co-Founder Claudia Poulin started to make conscious efforts to eat healthy by consuming more fruit and vegetables in 2014. She realized the effectiveness of plant-based diets in enhancing individuals’ well-being. In 2015, she partnered with Dominic Dube to start Evive Smoothie in efforts to encourage people to adopt healthy lifestyles. They formed the company to make available easy-to-use innovative smoothie cubes for healthy and delicious meals. The company became the first North American start-up to launch the concept. Today, Evive Smoothie products are available in 350 stores across Ontario and Quebec.
OVERVIEW OF PRODUCTS AND PREPARATION
A regular box that contains 12 breakfast smoothies goes for $48 per delivery or $4 per portion. On the other hand, a promo box with 24 breakfast smoothies costs $90 per delivery, and individuals save up to $6 per delivery or $3.75 per portion. Some flavors used to prepareEvive products include samourai, asana, pure, yogi, touktouk, zteque, viva, and Yin.
The smoothie cubes are prepared by the use of almond milk, or vegetable milk, such as soybean or oat milk. The Evive cubes are left to melt for 30 seconds without and it's ready to be eaten. 4 cubes are sufficient for a snack and 8 cubes for a complete breakfast.
Evive products are targeted at people who want to be healthy and live in Canada or across Quebec and Ontario. They are ideal for individuals who are busy or have less time to spare as it only needs 30 seconds to prepare the smoothie. Health conscious people inclined towards organic diets are also part of the target market for Evive Smoothies.
The company uses multiple colors including red, purple, yellow and green in promoting the cubes in the company’s official. The different cubes colors are meant to attract attention to different smoothies in a chess pattern between smoothies. The orange-shaped cubes are presented in a slide show featuring the founder's picture. On the flavor page, various cube colors are used to represent different flavors (for example, purple for grapes, green for avocado, yellow for pumpkin, and red for strawberry).
The main message on the website is that the company provides 100% natural smoothies with prepared from organic ingredients for the smoothies. On Instagram, the company makes use of pictures of colorful fruits with the smoothies in a bowl. The cubes and some fruits (the ingredients) are tailored to appear Instagram-friendly. Also, on Instagram, the message ‘Frozen is The New Fresh’ is intentionally presented as a call for individuals to be healthy and maximize freshness and nutrients by choosing Evive Smoothies. The company also show its environment-friendly approach to its production by inviting customers to reduce waste, save time and energy using its products.
Another customer said she experienced the products that are delicious and good for people who don't like vegetables. A woman said they are delicious and contain a lot more protein than the ones she was doing at home. The products were very cold and very well packed.
Evive Smoothie, Availability and Expansion
Evive Smoothie is currently available for the Canadian market only. The company plans to expand to the US, with an online store intended for launch in early 2019. The company currently covers over 800 retail stores in Canada and plans to expand its coverage to 1,000 stores in 2019. Evive Smoothie is expected to launch more organic food recipes in the future.
To find the products' availability of Evive Smoothie in the US and Canada, we started our research by exploring the official website of the company; we navigated towards the retail points page of the site that featured the availability of Evive Smoothie across 800 stores in Canada. Though the page did not mention any regions that the company covered, we triangulated the coverage by isolating each state listed on the map and clicking the location point to ascertain the complete address of stores.
Unconvinced with the result of retail points page regarding the presence of stores in the US, we tried to find the information from external sources. We were able to find references from Karyzma Agency, Le Journal de Montreal, La Presse, La Tribune, Agri-Food Export Group, among others. None of them mentioned details about any store's location in the US. However, Le Journal de Montreal stated the company's intention to expand the market to the US in early 2019. Alternatively, the FAQ page of the company website mentioned that the company only shipped its products to Canada for the moment. From all available evidence — stores point page, external sources, and FAQ page; we concluded that Evive Smoothie has not been covering the US retail market both online and offline.
To find the company's expansion plan, we focused on recent media publications, industry reports, and press releases to get more relevant information about the expansion plan. We were able to identify some coverage from news outlets such as La Tribune, La Journal de Montreal, Canada Newswire, La Voix de l'est, Food in Canada magazine, among others. We were able to identify some statements that featured the expansion plans of the company in the US and Canadian provinces. The detailed presentation of our findings can be found below.
Evive Smoothie in the Canadian Market:
Evive Smoothie is currently available in 800 stores across Canada within regions of Yukon, British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, and Nova Scotia. The company features its products in the frozen organic section of IGA, Rachelle Béry, Metro, April and other independent grocery stores in Canada.
It is found that only five of eight flavors are available for in-store purchase and include — Samurai, Yogi, ToukTouk, Pure, and Asana. Also, an online subscription service is available for the Canadian market with free shipping to Quebec and Ontario. The online subscription offers benefit to the customers by providing an exclusive selection to choose all available flavors including Asana, Yogi, Pure, Azteque, Samourai, ToukTouk, Viva, and Yin.
Evive Smoothie Plans to Expand Availability:
The company is actively seeking funding opportunity to increase its inventory and invest in equipment expansion plans. Evive Smoothie plans to enter the US Market by launching an online store for the US market in early 2019. The company mentioned its plan to export the products to the US in the coming year on the Agri-Food Export Group Quebec-Canada member page.
The company also plans to expand the retail presence in Canada to more than 1,000 stores in 2019, with a focus on stores in the province that hasn't been covered as of now. Alternatively, the company's founder shared the plan to introduce more organic food recipes in the future.
"In 2014, co-founder Claudia Poulin made a conscious effort to consume more fruits and vegetables. The shift in her diet made her realize the overall positive effect that a plant-based diet can have on a person’s well-being. However, she, along with her partner Dominic Dubé, knew that many people lack the time and knowledge to make the same kind of lifestyle change."
"Ils mènent également une ronde de financement pour aller chercher 1 M$ qui servira à acheter de nouveaux équipements et augmenter leur inventaire. Ils veulent aussi lancer un site web transactionnel aux États-Unis dès 2019. | (Translation: They are also conducting a round of funding to raise $ 1 million to buy new equipment and increase their inventory. They also want to launch a transactional website in the United States as early as 2019.)"