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Tag: Youfoodz

  • HelloFresh and Youfoodz in Legal Hot Water Over Alleged Deceptive Subscription Practices

    HelloFresh and Youfoodz in Legal Hot Water Over Alleged Deceptive Subscription Practices

    The Australian Competition and Consumer Commission (ACCC) has recently launched a lawsuit against two meal kit delivery companies, HelloFresh and Youfoodz. The case, filed in Federal Court, accuses the two companies of misleading their customers about the terms of their subscription services.

    Alleged Misrepresentation of Subscription Cancellation

    Both HelloFresh and Youfoodz are subsidiaries of the Germany-based HelloFresh SE. The former provides weekly meal kits while the latter offers pre-made meals on a weekly basis. The ACCC’s contention is that both companies violated Australian consumer law by falsely advertising that new customers could cancel their subscriptions without incurring any charges. In reality, despite cancelling within the specified period, a large number of consumers still faced charges.

    According to a representative from ACCC, while it was easy for customers to sign up for the services via websites and mobile applications, the cancellation of the first order required interaction with a customer service representative.

    Charges Despite Cancellation

    The alleged violations occurred from January 1, 2023, to March 14, 2025, for HelloFresh, and from October 1, 2022, to November 22, 2024, for Youfoodz. The ACCC states that during these periods, “62,061 HelloFresh customers and 39,408 Youfoodz customers were charged a fee despite cancelling their subscription before the specified cut-off time for the first order.”

    Moreover, the ACCC claims that HelloFresh required customers to provide payment details to access the full menu, but assured them during the sign-up process that they wouldn’t be charged unless they selected meals. However, in contrast to its promise, several customers were charged. Similarly, Youfoodz informed customers who had initiated their subscription’s cancellation that their first delivery was cancelled and they won’t be charged, which turned out not to be true.

    Investigation and Public Concern

    The ACCC initiated the investigation into these allegations against HelloFresh and Youfoodz in October 2024, following numerous complaints from consumers. The commissioner, Luke Woodward, expressed that businesses employing confusing and complicated subscription cancellation policies are a significant public concern. He emphasized that the ACCC would take enforcement action as necessary when there’s evidence of violations of the Australian consumer law and consumer harm.

    Questions & Answers

    What is the ACCC’s contention against HelloFresh and Youfoodz?
    The ACCC alleges that both companies violated Australian consumer law by falsely advertising that new customers could cancel their subscriptions without any charges. In reality, many customers incurred charges despite cancelling within the specified period.

    What were the periods during which these alleged violations occurred?
    For HelloFresh, the alleged violations occurred from January 1, 2023, to March 14, 2025. For Youfoodz, the violations are said to have taken place from October 1, 2022, to November 22, 2024.

    What does the ACCC plan to do about businesses with confusing and complicated subscription cancellation policies?
    The ACCC commissioner, Luke Woodward, stated that when there is evidence of breaches of the Australian consumer law and consumer harm, the ACCC will take enforcement action as necessary.

  • Youfoodz launches high-protein spinoff brand: Fuel’d

    Youfoodz launches high-protein spinoff brand: Fuel’d

    Ready-made food provider Youfoodz has today launched a new high-protein meal range under the sub-brand FUEL’D.

    The range, aimed at male buyers looking for larger portion sizes and higher protein levels, is available now across the P&C channel as well as supermarkets and will see a shift in packaging featuring a darker design skewed towards the male market.

    To appeal to this demographic, Youfoodz partnered with F1 driver Daniel Ricciardo.

    Lance Giles, Youfoodz founder and CEO said: “Getting to have Daniel Ricciardo join the Youfoodz family is a genuine privilege. It’s not every day you get to work with a world class athlete like Dan. We’re all big fans and can’t wait to see what the future holds for him and us.”

    The Australia and New Zealand market for ready-made meals is forecast to be worth $3.5 billion by 2022.

    The new FUEL’D range contains 14 different ready-made meals and retail for $10.95.

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  • HelloFresh to pick up beleaguered Youfoodz

    HelloFresh to pick up beleaguered Youfoodz

    YouFoodz is set to exit the ASX less than a year after listing after accepting a $0.93 per share takeover bid from HelloFresh – a 109 percent premium on the past month’s average trading.

    The bid values YouFoodz at approximately $125.3 million and will push HelloFresh into the pre-made meals market – a segment of the food delivery pie it hadn’t yet picked up.

    “The transaction combines YouFoodz’ strength in developing and manufacturing delicious ready-made meals with HelloFresh’s expertise in supply chain management, technology and direct-to-consumer marketing,” YouFoodz said in its statement to shareholders.

    “Both companies are unified in their purpose to provide Australians with delicious, high quality and affordable fresh meals.”

    YouFoodz’ board unanimously recommends its shareholders back the scheme, which will be voted on in October following an independent expert review.

    The ready-made meals brand launched its IPO last October at $1.50 a share, where it raised $70 million to list, and landed at a market capitalization of just over $200 million.

    However, the business struggled to hit the financial benchmarks it set itself, with EBITDA and revenue landing below expectations earlier this year.

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  • Youfoodz begins selling groceries online

    Youfoodz begins selling groceries online

    Ready meals business Youfoodz has begun selling groceries essentials for home delivery, alongside Seasonal Fruit & Veg Boxes, amid high demand for online groceries during COVID-19.

    Youfoodz’s Grocery Essentials, includes a selection of grocery items, from proteins such as chicken breast, mince, Porterhouse steak, and Tasmanian salmon, all of which are under $12, to eggs, milk, and vegetables.

    The convenience meals business said the range is “premium yet affordable” and will allow customers “to purchase all their fresh food from one place”.

    “In this time of unprecedented uncertainty and disruption many Aussies are doing it tough and as a business Youfoodz have a duty of care to play a small part in supporting the local community, customers, partners, and suppliers to ensure they come out the other end ok – if not better,” the convenience meals business said in a statement.

    “That’s why Youfoodz have boosted production capability, are continuing to develop and introduce new products, as well as taking an active role in supporting great initiatives.”

    The decision to pivot into online groceries is likely in response to changing shopping behavior prompted by COVID-19.

    Last week at Coles Q3 results, CEO Steven Cain noted that consumers are doing more home cooking and baking during the lockdown, and convenience meals are taking a hit.

    Cain said that Coles, which is a stockist of Youfoodz ready meals, has seen people shopping fewer times per week, and buying more when they shop.

    “With fewer trips, you get fewer impulse items being purchased,” Cain said.

    “Home cooking is a more economic way to feed the family than buying convenience meals or impulse items.”

    Cain noted that consumers are eating more fresh food, with veg sales at the highest penetration they have ever been.

    Youfoodz is also taking advantage of increased demand for fresh produce, with a selection of Fruit & Veg boxes available, ranging in price from $44.95 to $69.95.

    Chief executive Lance Giles said the concept for Fruit & Veg Boxes came about when a local supplier felt the hit when restaurants and cafes slowed trading due to Coronavirus.

    “I received a call from Michael, one of our key suppliers, and the director of V One. He explained how his business had been significantly affected by COVID-19 and that he was days away from having to lay off the majority of his workforce,” Giles said.

    “After helping each other grow our businesses for many years, I felt there must be a way to help. That’s how fruit and veg boxes was created.”

    Youfoodz grocery items and fresh produce are sold online alongside the ready meals range, as individual items are as part of The Ultimate Grocery Box, but are packed separately for delivery. Discounts are offered if ready meals are bought alongside the grocery box.

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