FreshDirect targets price-conscious shoppers with new campaign

Grocery delivery company FreshDirect is jumping into the new year with a new tagline, along with a loyalty program and discounts such as free delivery, in an attempt to reach cost-conscious buyers.

The “Food That Delivers You” effort focuses on “how food connects people and the quality of (that) food,” said John MacDonald, FreshDirect’s chief marketing officer. In the past, the brand—which serves New York, New Jersey and Connecticut—has been “a little more functional” in its marketing, focusing on the logistics and convenience of food delivery, he said. 

One ad, called “Good Day,” shows a family laughing at a dinner table, with two adults doing a “Lady and the Tramp”-style kiss over a strand of spaghetti. A second spot, “Potato Frittata,” aims to “be playful (and) have a positive energy,” said Jeff Warman, chief creative officer and partner at Curiosity, which created the campaign and was hired as the brand’s agency of record in March to lead the rebrand.

The spots will air from January to March, which MacDonald said is FreshDirect’s busiest season partly due to the cold weather and also because consumers develop goals and “take a look at what and how they’re eating,” he said.

The media buy includes Facebook and Instagram, local TV stations including WABC, WCBS, WNBC, WPIX, WLNY, WNYW and WWOR, along with streaming platforms Peacock, Paramount, Hulu and Disney+. Out-of-home activations and mail advertising in the tri-state area are also planned.

The campaign comes as food brands deal with inflation. Polling firm Morning Consult found that 17% of U.S. respondents bought groceries via delivery in November, down from 19% a year earlier, after reaching a 12-month low of 15% in March. 

FreshDirect will attempt to ease consumer concerns over prices by offering its “DeliveryPass” for free for a year to new customers. The pass normally costs $129 per year and allows customers to get unlimited free deliveries and other benefits including reserving specific times for delivery.

Separately, new customers will get a promo code for a $50 discount on purchases.

“One of the barriers that people have for engaging consistently with a brand is some of those fees,” such as taxes and delivery, said MacDonald. “So to invest in new customers coming in in 2023, we’re investing in removing those barriers.”

Later this year, FreshDirect will launch its first loyalty program with the aim of retaining long-time users. The program will include perks relevant to New York City consumers, such as tasting experiences for new products or information about artisan yogurt makers in Brooklyn, said MacDonald. 

The food delivery brand has “pretty aggressive growth plans within the New York market,” said MacDonald. FreshDirect recently pulled out of Philadelphia and Washington, D.C., which MacDonald said was because “it took away from how we want to grow in NYC.”

MacDonald declined to disclose spending for the campaign. In August, Fresh Direct invested in broadcast TV as it moved some money away from performance marketing.  

MacDonald is a long-time executive with food retailing giant Ahold Delhaize, which acquired FreshDirect in January 2021. Ahold Delhaize in its 2021 annual report stated that FreshDirect contributed $702 million in net sales to the company that year. MacDonald did not disclose 2022 sales figures.