Pacific Foods
Organic and natural food company producing plant-based beverages, soups, and broths.
PE-OWNED
Acquired by KKR2017-03-27
What Made It Great
Pioneer in organic plant-based beverages with strong natural channel presence
What PE Will Likely Do
Pacific Foods will likely replace higher-quality organic and non-GMO ingredients in their plant-based beverages, soups, and broths with cheaper alternatives to cut costs
Package sizes for Pacific Foods products will likely be reduced while prices are maintained or increased (shrinkflation)
Pacific Foods will likely switch to lower-cost suppliers and manufacturing options, resulting in changes to their supply chain
Pacific Foods may alter their product recipes to reduce ingredient costs, impacting the taste and nutritional profile of their items
Pacific Foods may consolidate and close some of their manufacturing facilities, leading to potential disruptions in production and availability of their products
Expected Timeline
“0 to 6 months months”
Minimal visible changes as the ownership transition occurs
“6 to 12 months months”
Behind-the-scenes changes to suppliers, formulas, and manufacturing begin
“12 to 24 months months”
Consumers start noticing quality differences in Pacific Foods products, with complaints and brand reputation decline
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Closely monitor the quality and ingredient changes in Pacific Foods products, as they may start to deviate from the original high-quality, organic, and natural formulations
Be prepared for potential price increases and package size reductions for Pacific Foods items
Consider switching to alternative organic and natural brands if the quality of Pacific Foods products declines significantly
Alternatives
Look for family-owned or employee-owned businesses