NEW YORK – Meal kit manufacturer HelloFresh will expand West Coast production and distribution capabilities with a new distribution facility in Phoenix, Ariz. The facility will begin operations in the fourth quarter of 2021 and could provide as many as 1,200 new jobs over time. The center spans 440,000 square feet, making it the company’s largest shipping and fulfillment center in the world.
The Phoenix facility will support growing demand for HelloFresh meal kits on the West Coast. Additionally, Berlin-based HelloFresh recently began operations in a new 375,000 square-foot distribution center in Irving, Texas, at DFW Airport. The company expects the new distribution centers to support HelloFresh’s long-term growth plans.
“We are thrilled to be expanding our operational footprint on the West Coast,” said Uwe Voss, chief executive officer of HelloFresh US. “Joining our Richmond facility, this new Phoenix distribution center will help strengthen our presence in the region and further support our mission of excellent service and delivery of delicious meals. We also look forward to tapping into the region’s talented labor pool and making a positive impact on the local community.”
Adam Citron, Marc Hertzberg and Tony Lydon with Jones Lang LaSalle represented HelloFresh in this transaction. Don MacWilliam and Payson MacWilliam with Colliers International represented the building owner, Prologis. Willmeng Construction and Deutsch Architecture are performing the building improvements.
“Prologis is proud to continue expanding its relationship with HelloFresh by helping it reach more customers quickly,” said Jeff Foster, vice president and market officer, Prologis. “The Phoenix market in particular is experiencing rising demand for modern logistics facilities that serve as the backbone of resilient supply chains. At a time when consumer behavior is shifting toward online shopping and e-commerce adoption is growing rapidly, strategically located industrial space is emerging as a strong competitive advantage.”
HelloFresh is a leading global supplier of home-delivered meal kits. In the first quarter of 2021, HelloFresh delivered 239 million meals and reached close to 7.3 million active customers. The company delivered more than 278 million meals across the United States in 2020.