Vancouver-based Fresh Prep Foods Inc. has received court approval to acquire its competitor, Goodfood Market Corp., a move that significantly expands its Canadian meal kit delivery reach. The transaction, which is expected to close around November 13, 2026, will allow Fresh Prep to absorb approximately 30,000 active customer subscriptions and various operating assets.

Why is the acquisition happening?

Montreal-based Goodfood filed for creditor protection in August after facing financial difficulties. The company noted that rapid growth during the COVID-19 pandemic was followed by a sharp decline in sales, leaving it unable to meet its debts.

In contrast, Fresh Prep has focused on technological automation and a zero-waste business model to maintain its growth. The company now generates over $100 million in annual revenue and operates across five provinces.

What does this mean for meal kit delivery customers?

While the specific purchase price remains undisclosed, the deal includes several key components for the service provider:

  • Transfer of customer accounts and active subscriptions
  • Acquisition of intellectual property and technology contracts
  • Integration of select inventory and equipment

Existing Goodfood customers in Québec will transition to Fresh Prep products over the coming month. According to company co-founder Dhruv Sood, those customers in Québec will eventually benefit from a reduced delivery fee.

How will operations change?

Fresh Prep does not intend to take over Goodfood's physical facilities in Montreal or Calgary, as it already maintains its own capacity. Instead, the company will use its existing licensed kitchen in Montreal to fulfill orders.

To support this influx of new business, Fresh Prep has offered positions to more than 80% of the former Goodfood staff. This will add roughly 146 employees to the Fresh Prep team.

FAQ

Which provinces will Fresh Prep serve after this deal?

The company will operate in British Columbia, Alberta, Ontario, Quebec, and Saskatchewan.

When will Goodfood customers need to switch platforms?

While the transition begins soon, customers may need to move to the Fresh Prep website starting December 5 to manage their orders.