Amy's Kitchen to offer family-sized versions of top entrees

Amy's Kitchen, a Petaluma, Calif.-based maker of organic prepared food, will begin selling family-sized offerings of its best-selling entrées, company president Paul Schiefer tells Axios.

Why it matters: Larger sizes will provide households with a convenient alternative to delivery at a relatively affordable price during a time of inflation.

Details: The launch comes in September with the back-to-school season in full swing, a company spokesperson said in an email.

• In addition, Amy's will sell multi-pack burritos beginning in August, with either dairy or vegan cheese.
• In a recent study by the company, it found that 69% of parents struggle to find healthier convenient meals.
• It also found that 73% of parents serve more canned, frozen, or ready-made meals during the back-to-school season.

By the numbers: Amy's currently produces roughly one million meals per day within its three facilities with 750,000 square feet of manufacturing space, Schiefer says.

• Half of the brand's consumers are under the age of 45, he adds.
• Though Schiefer declined to comment on the company's revenue, Amy's was previously projected to generate about $600 million in revenue in 2020.
• Since its founding in 1987, before there was an organic standard, the company has had a 22% CAGR, he says.

Of note: Founders Andy and Rachel Berliner, who named the company after their daughter, continue to own and be involved in the business.

Zoom out: Last year the frozen meal category grew 8.6% to about $72 billion in sales, also according to the American Frozen Food Institute.

• Frozen meals are also a sustainability play, helping consumers to cut back on food waste.

The big picture: After years of tepid growth leading up to the pandemic, frozen meal sales have boomed, growing 21.9% in 2020 alone, according to the American Frozen Food Institute.

Reality check: Brands such as Nestlé's Stouffer's and ConAgra's Banquet, which largely cater to an older consumer demographic, still eclipse Amy's in size, Schiefer notes.

What's next: The company launched a fast food concept called Amy's Drive Thru, with four locations and a fifth opening in Southern California, Schiefer says.

• It sells plant-based burgers, pizza, and burritos in addition to salads, fries, and shakes, among other offerings, though some items contain dairy.

Catch up fast: Last year Amy's faced complaints from workers of unfair labor practices, including heavy workloads that could lead to injury.

• The company invited the Occupational Safety and Health Administration (OSHA) and outside auditors to investigate.
• "We wanted transparency," Schiefer says of the move.
• Schiefer mentions that some claims were true — though he declined to comment on which ones — but denied claims over lack of clean drinking water and bathrooms.

Zoom in: Schiefer says the pandemic placed stress on the rituals and the fabric of the organization.

• Workers were separated by plexiglass and required to wear goggles and masks.
• Employee feedback sessions and celebrations for events such as birthdays were also eliminated for safety reasons.

Meanwhile, Amy's recently announced a number of management changes that included promoting Schiefer to president and the creation of a board of directors.

• Schiefer says he is charged with providing continuity rather than transformation to prepare the business for the next generation.