Australian vegan meal kit subscription service, Just Add Vegan, has opened an AUD$700k seed round to upgrade its subscription platform, increase operational efficiency and officially launch in New South Wales and the Australian Capital Territory.
Just Add Vegan was founded in 2021 by Padma Leanos and Arthur Voorwinden as Australia’s first health-focused meal service, operating at the intersection of 100% plant-based eating and convenience.
“We can be a major player in the plant-based food-delivery segment”
Since its founding, the company has tested its concept by delivering more than 12,000 meal kits to more than 300 customers, allowing it to evaluate its effectiveness, improve its operations and measure its potential success.
“It’s been very rewarding to see our vision come to life and to hear from customers that Just Ad Vegan has actually been a ‘life-changer’ for them. Perhaps the strongest indicator of our success is the average number of orders per customer, 12 – three times that of HelloFresh,” commented Leanos.
A large and growing market
According to the company, Australia is the world’s third fastest growing market for plant-based meals and the fifth largest for meal kit delivery, with revenue expected to grow by 60% over the next four years. To capture this huge market, Just Add Vegan will primarily target flexitarians, the largest group of plant-forward consumers, maximizing its marketing efforts through influencers and events.
“We have everything in place to capture a significant portion of this large and growing market. We offer better taste, higher nutritional value and more choice than big foreign brands. Additionally, we are 100% Australian family-owned, purpose-driven and more sustainable,” commented Voorwinden.
Evolving into a “one-stop” shop
Just Add Vegan says it aims to become a convenient and comprehensive source for all plant-based food needs every week – a “one-stop” shop. In addition to meal kits, the brand offers a variety of add-on products from premium third-party brands, including Sindian sausages and dips, meat substitutes from Suzy Spoon, and cheese from Miller Lane Foods (which they also use in their meal kits).
“Our customers love the option of adding products to their weekly box, rather than ordering elsewhere. It saves them time and shipping fees,” Leanos said.
According to the company, add-on products increase customers’ costs per order. Their profit margins are better, helping to improve the overall profitability of the business. Additionally, they can be ordered as needed, reducing excess inventory and reducing waste.
“We will significantly increase the breadth and depth of our third-party product range, including superfoods and supplements. We are also expanding the Just Add Vegan brand with add-on products, including spice mixes, sauces, cereals, snacks and a limited range of prepared foods,” adds Lianos.
A growing future
In addition to expanding its portfolio, Just Add Vegan announced ambitious milestones for the next five years: launching a gluten-free range, calorie-smart, and high-protein meal plans; its expansion, achieving plastic-neutral and B corporation accreditation; Expand locally and overseas, and expand its technology and operational capabilities.
“During our test market we gained first-hand insight into the key success factors of our business. Over the past few months we have fine-tuned our strategy and updated our business plan and financial projections,” said Voorwinden. “We are more convinced than ever that Just Add Vegan has a great future ahead of us and that we can become a major player in the plant-based food-delivery segment,” added Voorwinden.