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Shining a light on PE ownership.

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Kettle Brand Potato Chips

food_consumer
PE-OWNED

Premium kettle-cooked potato chip manufacturer known for all-natural ingredients.

PE-OWNED

Acquired by Leonard Green & Partners2006-04-18

View PE Firm Profile

What Made It Great

“

Premium positioning in snack foods with natural ingredients and artisanal production methods

What PE Will Likely Do

Predictions

Kettle Brand Potato Chips will likely switch to cheaper, lower-quality potato varietals and oils to reduce ingredient costs

HIGH LIKELIHOODBased on: The acquisition by Leonard Green & Partners, a private equity firm with a high 20% bankruptcy rate and a track record of cost-cutting tactics

Package sizes for Kettle Brand Potato Chips will likely be reduced while prices remain the same or increase

HIGH LIKELIHOODBased on: The industry playbook for private equity in the food/consumer goods sector, which shows a high likelihood of ingredient downgrades, shrinkflation, supply chain changes, and formula changes

Kettle Brand Potato Chips will likely consolidate or close some of its production facilities, leading to changes in production methods and inconsistent product quality

HIGH LIKELIHOODBased on: The specific tactics used by PE firms in this industry, such as replacing quality ingredients with cheaper alternatives and consolidating manufacturing

The signature 'kettle-cooked' texture and 'all-natural' ingredient profile of Kettle Brand Potato Chips will likely be compromised as the company makes formula changes to reduce costs

HIGH LIKELIHOODBased on: The specific tactics used by PE firms in this industry, such as replacing quality ingredients with cheaper alternatives and consolidating manufacturing

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minimal visible changes as ownership transition occurs

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Kettle Brand begins using cheaper potato varieties and oils, supply chain changes start to take effect

12-24 months

“12 to 24 months months”

Consumers start noticing differences in taste, texture, and consistency of Kettle Brand Potato Chips as quality degrades, brand reputation begins to suffer

Similar Cases

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What You Can Do

Take Action

Actions

  • Be on the lookout for changes in the taste, texture, and consistency of Kettle Brand Potato Chips

  • Compare the ingredient lists and package sizes of Kettle Brand Potato Chips over time to identify potential cost-cutting measures

  • Consider switching to alternative premium chip brands that maintain quality and authenticity if Kettle Brand Potato Chips deteriorates

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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"Kettle Brand Potato Chips is now PE-owned. Here's what that means for you."