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Quaker Oats partners with Chef'd to bring you a breakfast meal kit

Source: PepsiCo. Chef'd is trying to differentiate itself from the pack of meal-kit start-ups by avoiding subscriptions and raising money from food companies

Quaker Oats wants you to start your day with a bowl of oatmeal.

The subsidiary of Pepsi (PEP) has partnered with Chef'd, an online meal-kit marketplace, to offer a breakfast-based meal kit.

"We are launching the breakfast category for Chef'd," Becky Frankiewicz, senior vice president and general manager of Quaker North America, told CNBC. "This will make Chef'd one of the only major meal-delivery services to offer breakfast. Most offer and are focused on dinner."

The company will provide customers three Quaker Oats-brand "Overnight Oats" recipes: blueberry honey, strawberry blueberry maple syrup and dried cherry banana pecan with brown sugar.

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Overnight Oats are rolled oats that are layered in a mason jar with milk, yogurt and other toppings, like fruit or nuts, and left overnight to absorb the liquid and flavor. The concoction became popular over Pinterest and other social media platforms as a quick and easy breakfast solution for folks on the go.

"We've been in the breakfast business for almost 140 years," Frankiewicz said. "Chef'd allows us to reach this group of millennials who are ordering online, looking for convenience, looking for curated meals. It allows us to meet those needs in a completely new way."

Chef'd will be selling the Quaker Overnight Oats meals for $10 for two servings, and the package will contain all of the dry ingredients, fresh fruit and dairy needed for each recipe as well as a signature Quaker mason jar.

"We've seen firsthand the growing demand for fun, flavorful, nourishing breakfast options, particularly among the millennial generation," Chef'd founder and CEO Kyle Ransford said in a statement. "It made perfect sense to launch this new category and partner with a trusted brand like Quaker that has been synonymous with high-quality breakfast for more than a century."

Quaker Oats isn't the first brand to partner with a meal-kit delivery service in recent months. Tyson (TSN), Campbell Soup (CPB) and Hershey (HSY), among others, have begun working with online services to bring kits to the market.

The meal-kit industry has exploded since 2012 — quickly becoming saturated with more than 150 companies competing nationally, regionally and locally, all fighting for their share of the $1.5 billion market.

"The meal-kit delivery service is booming," Frankiewicz said, noting that millennials are cooking for the sake of "authenticity" and "genuineness" and not for leisure.

Quaker Oats noted that it may roll out other items from its portfolio through Chef'd, although its remaining mum on its plans for now.

"Oats are nature's blank canvas," Frankiewicz said. So don't be surprised if other cold and hot recipes arrive on Chef'd next year.




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