My Food Bag sale on the cards? Meal kit provider begins strategic review
Friday, 1 May 2026
It has been a tough ride for My Food Bag shareholders, analysts says, and the announcement of a strategic review is effectively “putting up the for-sale sign” and letting the market know it is open to offers.
In a NZX market update on Wednesday, the meal kit provider said “given the company’s recent improved performance has yet to be reflected in the share price” it considered now an appropriate time to undertake a strategic review of the business.
It has appointed Cameron Partners as its financial advisor for that review.
My Food Bag’s share price reacted positively to the announcement, gaining more than 15% on the news, last trading at 28 cents.
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Milford analyst Jeremy Hutton said the review was the board signalling the public market is undervaluing the business - in their view - and putting the company in play.
“[This effectively puts the company] open to offers and putting up the for-sale sign. This is a way to try and realise some value, perhaps, above what the public market is crediting it with at the moment,” Hutton told The Post.
“It has been a tough ride for shareholders and they are likely wanting out.”
My Food Bag has lifted its performance, but off a low base, Hutton said.
Company revenue rose 3.8% to $85.4 million in the last six month result, but its after-tax profit slipped to $2.9 million, compared with $3m a year earlier.
In that time its customer numbers had grown to 61,300 “active” customers, up from 60,100.
The business is majority owned by Waterman Capital.
“Since listing the business the share price hasn’t gone well. A lot of items impacting them were outside of their control with Covid and huge inflation, and they haven’t been able to recoup this through price increases, but also they have reached business maturity status in NZ.
“You also have a private equity firm as the largest shareholder wanting to realise their investment. PE firms are generally time limited investors and will have to return capital to their underlying investors at some point.”
My Food Bag has been contacted for comment.
Retail commentator Chris Wilkinson of First Retail Group said My Food Bag operated in an industry that was tough to crack at present, with consumers conscious of their budgets amid the high cost of living, coupled with additional fuel price pressures.
He said My Food Bag, along with other providers, had shown to be thinking outside the box to grow business, including setting up plans and boxes for specific health conditions, such as what it calls a Diabetes Plan and offering those that were gluten free.
Some meal kit providers had begun moving to respond to the growing movement of consumers using weight loss drugs, and how they could cater to that portion of the market, as a way to increase sales.
However, Wilkinson said operating in this meal kit market remained “tougher than ever before”, especially in New Zealand.
Supermarket takeover?
Asked what he thought would be the best course of action for My Food Bag, he said being purchased by the likes of a supermarket giant such as Foodstuffs that could offer its meal kits in its supermarkets could drive significant sales for the business.
He said the ready-made and meal kit market in New Zealand remained a tiny offering, compared to what it was and the level of convenience offered in supermarkets internationally in markets such as the UK.
“It has got strong potential to be an evolution for the likes of say Foodstuffs.
“In the past Foodstuffs has moved on specialist niche providers, like when they did Wishbone back in the day - they took a stake in Wishbone because of the growth of the ready made meal market. We’re still nowhere near what's happening in places like the UK with Marks & Spencers and Waitrose and those other supermarkets with super convenience.
“That would be the logical next step because people being able to pick up the kits in the stores would create another opportunity for the brand.”
Foodstuffs, the operator of supermarkets Pak'nSave and New World, said it did not comment on market speculation when asked if it was interested in acquiring or taking a stake in My Food Bag.
Wilkinson agreed with Hutton that it had been difficult for My Food Bag to meet shareholder expectations under its current ownership structure.
“Sometimes the only route to grow profitability is to reduce portion sizes or follow through with cost increases, and that’s particularly challenging across the whole food sector at the moment.”