Business Matters

Timo Boldt, founder and chief executive of Gousto, believes Britain’s food system is broken. He points to the growing economic burden of diet-related disease with Government figures suggesting obesity alone costs the NHS more than £11 billion a year, while broader estimates put the total economic cost of overweight and obesity at more than £100 billion annually once lost productivity and reduced quality of life are included. Boldt argues the problem begins with what Britons eat. Research suggests more than half of the calories consumed in the UK come from ultra-processed foods, rising to around two-thirds among children and adolescents. He says these products are often engineered for what the industry calls the “bliss point” — the combination of salt, sugar and fat that keeps people coming back for more — and that the result is rising levels of obesity and diet-related illness. He defends Gousto’s typical price point of about £3.20 per meal per person, arguing that it compares favourably with supermarket shopping once household food waste, time spent planning meals and convenience are taken into account. The company cannot compete with the very lowest-cost diets, he admits, but says it is targeting the large proportion of households already spending similar amounts on evening meals. Boldt also argues that farmers sit at the weakest point in the food chain, squeezed by large manufacturers and retailers who dominate what ends up on supermarket shelves. He says the system would look very different if incentives favoured fresh produce rather than heavily processed foods. Government action so far — including the sugar tax and restrictions on junk-food advertising — is, in his view, only a start. He calls for a broader approach combining taxes on unhealthy products with subsidies for more nutritious farming, alongside tighter rules on product placement in supermarkets. If diet-related disease could be reduced, he argues, the savings for the NHS and the wider economy would be enormous. The long-term solution, he says, is to “go upstream” and change what people eat by reshaping the food system itself. Gousto grew rapidly through the 2010s, with annual growth of around 90% in its first decade. But the business faced a very different environment in 2022, as interest rates rose sharply and household budgets tightened. Boldt responded by expanding the range of recipes and focusing on value, while pushing the company towards profitability and self-funding. He started the business fifteen years ago after long hours in the finance industry left him eating poorly. In the early days he delivered boxes himself, handing out his personal mobile number to customers. Today, after expansion into Ireland, he says the next phase will be international — once the company has fully cracked its home market. Presenter: Sean Farrington Producer: Olie D'Albertanson Editor: Henry Jones 00:00 Fliss and Sean start pod 01:39 Timo Boldt joins BBI 02:25 Obesity caused by ultra processed food and its impact 03:50 The cost of Gousto and whether it's too expensive 11:15 Farmer not paid enough. 19:56 Discount model in the industry 23:17 Setting up Gousto and hand delivering food 27:24 Tougher times and how they were navigated 32:20 Why is Gousto only in the UK and Ireland? 39:40 End of pod