Hy-Vee to invest in $64 million prepared food, meal kit facility
Hy-Vee Inc. plans to build a $64 million production facility in Ankeny, Iowa, that will house the West Des Moines-based chain’s prepared foods commissary, central bakery and meal kit division, according to an article in the Des Moines Register. The company will also invest $22 million in expanding the Hy-Vee-owned Perishable Distributors of Iowa warehouse in Ankeny.
“The move appears to position Hy-Vee to compete for more market share in the $2.2 billion meal kit business, competing with at-home delivery businesses like Blue Apron and Hello Fresh,” the article stated. Pentallect, a Chicago-based consulting firm, predicts that the at-home meal kit market will grow 25 to 30 percent over the next five years.