Provenance

Organic Prepared Meals Delivered

Company Information

Website:

https://www.provenancemeals.com/

Sector:

Food Service

Location:

Brooklyn, NY

Provenance delivers organic, ready-to-eat meals straight to your door.

With this service, customers can order meals “a la carte,” participate in week-long “detox” programs, or receive three meals per day through annual subscriptions.

Provenance's annual revenues have increased each year since 2014, and the company has been profitable through inception. It’s been featured in Forbes, The New York Times, and US Weekly, and notable customers include award-winning actresses like Naomi Watts, Rachel Brosnahan, and Sarah Paulson.

Provenance has achieved initial success targeting the New York market. Now it’s raising funds to expand to the west coast and increase its brand awareness through partnerships with wellness brands.

Meal kit services were once expected to permanently disrupt the food industry. In November 2016, CNBC ran an article entitled: “It’s not a fad. Meal kits are going to change the way you eat.”

These projections helped meal kit companies like Plated, HelloFresh, and Blue Apron become enormously successful. At one time, Blue Apron was worth $2 billion.

However, the hype of this type of service was short-lived. As of May 2019, according to consulting firm NPD Group, only 4% of U.S. consumers have tried a meal kit service.

Meanwhile, companies in this industry are struggling. Chef’d, which launched in April 2015 and raised $35 million from investors like Campbell’s, closed its doors in 2018. And after rising to a value of $2 billion, Blue Apron (NYSE: APRN) now has a market cap of just $35 million.

As Cara Brosius, a market research analyst with Packaged Facts, told the Los Angeles Times last year, “Meal kits are a more expensive but less convenient option for busy people who do not have time to cook.”

Instead, people are turning to ready-made meals and takeout. In 2018, market research company Frost & Sullivan estimated that the U.S. food delivery industry generated $82 billion in revenue. And the U.S. prepared meal market was valued at $65 billion in 2019. By 2023, it's expected to reach $72 billion.

Provenance is targeting this market. To be clear, this is not a meal kit service. All meals are delivered already-made and ready-to-eat.

Each meal is 100% gluten-free, dairy-free and is made with organic, sustainably-sourced ingredients. There are no GMOs, pesticides, or refined vegetable oils, and all meals are made with no refined sugar.

The company uses recyclable packaging and relies on nutritionists and health-supportive chefs to create each meal.

Madelaine O’Connell, a Provenance customer and Vice President at Goldman Sachs, noted, “This was the best food delivery service I’ve ever tried. Today’s three meals were incredibly delicious and I didn’t find myself starving in between them like I have with other plans. I truly would love to eat like this every day.”

Provenance targets busy urban female professionals between the ages 25 to 45, typically with a household income of more than $200,000 per year.

Customers can place a one-time order, starting at $68 per day, which gets them a full day of meals (breakfast, lunch, and dinner). They can also pay an additional $99 annual subscription fee to become a member and receive orders automatically each week. Customers save 10% on recurring orders.

Provenance also offers a Detox Program. This starts at $75 per day and includes a 5- or 7-day supply of shakes, supplements, and plant-based meals. This program is intended to cleanse the digestive system.

The company offers a two-week Transformation Program, designed to alter unhealthy eating patterns and ease into a new “clean eating” routine. This program costs $65 per day.

Provenance’s cost to acquire each customer is $40, and each customer’s lifetime value is $1,082. The average order size is $244, and 76% of the company’s revenue in the past 12 months has come from return customers. In 2018, Provenance increased its gross margins from around 50% to 61%, and generated $1.4 million in revenue.

Provenance has promotions with several wellness brands, including Equinox, Cryofuel, Clean Market, and Parsley Health.

With funds raised, Provenance will expand to Los Angeles, a move the company believes will double its annual revenue. It will also upgrade its e-commerce software to manage all order processes and track client health metrics.

Long-term, Provenance aims to create two shipment “hubs,” one on each coast. This will enable it to target additional metro areas.

Team Background

Caroll Lee - Founder & CEO

Caroll has a background in nutrition, and more than 20 years of experience in the e-commerce industry.

She is a board certified health coach who spent nine years as a certified health counselor for Clee Wellness, a nutrition company. Prior to that, she was a producer for SHIFT, a project management company. While there, she launched websites for luxury brands including Marc Jacobs and Burberry.

She spent three years as an eBusiness production manager with Gucci and helped launched its website.

Caroll earned a Bachelor’s degree from McGill University and was certified in health counseling from the Institute for Integrative Nutrition.

Serafina Alonso - Culinary Director

Serafina is a second-generation chef, and graduated from the prestigious French Culinary Institute.

Before joining Provenance, she worked at fine dining restaurants including Bouley, Ladurée, and Dean & Deluca.

Liz Mazzei - Director of Marketing

Before joining Provenance, Liz spent three years as an independent marketing consultant. Prior to that, she was Public Relations Director for the New York State Restaurant Association.

She was Director of Sales and Marketing for imbookin, a digital platform enabling users to price and book event venues. In 2013, imbookin was acquired by Bizbash Media. She began her career as a marketing and product analyst for Feeva Technology, an advertising company.

Liz earned Bachelor’s degrees in International Business and Spanish from San Francisco State University.

Lauren Haupt - Director of Operations

Lauren began her career as a baker with Levain Bakery in New York. From there, she was a pastry chef for restaurants including The Dutch and Pure Food and Wine.

For two years, she was General Manager of Empire Cake, and was most recently a chef instructor at The Sylvia Center, a program teaching families how to cook.

She earned a Bachelor’s degree in Sociology of Food from City University of New York.

Sarah Hebbel-Stone - Head of Client Wellness

Sarah has spent the last six years as Founder and Health Coach of Caracol Wellness, a nutrition-focused business.

Before that, she was Content and Design Coordinator for FarmPlate, a community of 40,000 farmers and fishermen attempting to ensure everyone has access to fresh meals.

Raising
$1.07 million
Committed
$106K (10%)
Current Valuation
$0 Cap / 20% Discount
Min. Investment
$100
Deal Type
Title III
(For all investors)
Offering Type
Crowd SAFE
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