NEW YORK (AP) — Nestle has bought a minority stake in the ready-to-eat meal service Freshly as the global food giant moves to expand its distribution network.
The move comes a week after the world's largest packaged food maker said it may sell its U.S. candy business, which includes Butterfinger candy bars and Raisinets. The investment also comes on the heels of Amazon's plan to buy Whole Foods for $13.7 billion, potentially transforming the market for retailers and grocers.
Nestle is the lead investor in a $77 million round of funding for New York-based Freshly, which has raised $107 million in capital. The company is looking to expand and has already announced plans to open an East Coast kitchen and distribution center.