Nature's Path Foods
Organic cereal and breakfast foods manufacturer focusing on natural and organic products.
PE-OWNED
Acquired by Leonard Green & Partners2020-01-30
What Made It Great
Pioneer in organic breakfast cereals with strong health positioning
What PE Will Likely Do
Nature's Path's organic and natural ingredients will likely be replaced with cheaper, non-organic alternatives
Package sizes for Nature's Path cereals and foods will be reduced while prices remain the same or increase (shrinkflation)
Nature's Path will switch to lower-cost suppliers and manufacturing processes, leading to noticeable reductions in product quality and taste
The company will alter recipes and formulas to cut costs, resulting in changes to the flavor, texture, and nutritional profile of Nature's Path products
Expected Timeline
“0 to 6 months months”
Minimal visible changes as ownership transitions, but behind-the-scenes changes to suppliers and formulas begin
“6 to 12 months months”
Consumers start noticing subtle differences in the taste, texture, and quality of Nature's Path products
“12 to 24 months months”
Significant deterioration in product quality as cost-cutting measures accelerate, leading to increased consumer complaints and brand reputation damage
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Be on the lookout for changes in the taste, texture, and nutritional content of Nature's Path products
Compare package sizes and prices to identify any instances of shrinkflation
Consider switching to alternative organic and natural cereal brands that have not been acquired by private equity firms
Voice your concerns about quality changes directly to Nature's Path and consider boycotting the brand if the changes become unacceptable
Alternatives
Look for family-owned or employee-owned businesses