USA – Sun Basket, the San Francisco-based subscription meal delivery service has inaugurated its third distribution facility, a cave storage centre in Rock City, South of St Louis.
The facility helps expand its meal kit delivery service and delivers on its growth strategy in the Midwest.
Sun Basket said the 115,000 square foot facility will use 50% less energy than its West and East coast facilities as the cave acts as a natural refrigerator.
According to the company, the Rock City facility can also act as a support system to Sun Basket’s other distribution centres, delivering meals to both coasts when they face disruptions to deliveries.
“With the launch of this new facility, we now have the ability to support over US$1 billion in revenue and build the pre-eminent nationwide healthy meal kit service in the US.
“We were particularly excited about partnering with Rock City given its unique underground cave location adds to our focus on sustainability, which is a core part of our business model,” said Adam Zbar, CEO and co-founder of Sun Basket
In an expansion drive in the US, the company opened a new distribution site in Westampton, New Jersey which it said would help increase its meal kits supply, five to ten more times to the East Coast.
The 190,000 square-feet facility was expected to earn higher revenues of up to US$500 million, with 400 new jobs added for the benefit of the local economy.
It has been growing its meal kit segment, cutting out middlemen and increasing their reach by supplying customers fresh organic and sustainable ingredients and recipes.
Sun Basket operates another facility at San Jose, CA which services eight Western states with organic meals.
Adam had in a statement noted the company was embarking on a commitment to upgrade their facilities with automation, improve efficiency and satisfy customers.