No, they’re diving in because they want the early growth and infrastructure without the need to build it themselves. That “rounding error” can be seen in a dif

No, they’re diving in because they want the early growth and infrastructure without the need to build it themselves. That “rounding error” can be seen in a different light, it’s an area of the market that is making significant progress YoY. This isn’t a play for the next year, it’s seeing the YoY growth of this vertical within their market and wanting to capitalize on that. The world is and has been moving towards “easier” and services that provide immediate gratification. In-store meal kits are right in that category. People don’t want to buy homes, cars or big ticket items anymore, there’s a culture of “leasing” because of the inconvenience that goes along with the maintenance/upkeep of those items. In a similar vein, lots of people view cooking “healthy” meals to be difficult (it’s not) but are willing to spend a little more to get a simple meal to cook that is either healthy or gives the illusion of being so. $200M is dirt cheap to acquire the talent, and all of the existing processes of the company. Add in the scale of someone like Kroger, and the price per unit they can acquire is going to be vastly cheaper then someone like Blue Apron or the various other meal kit startups. You end up placing these in their stores on endcaps and other areas where it’s only a bit more per person to buy a meal kit that’s marketed as “healthy” and they’re going to fly off the shelf. This is one acquisition that makes a ton of sense to me, and Kroger likely sees In-Store meal kits as continuing to grow tremendously YoY.