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Shining a light on PE ownership.

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PA

Pacific Foods

food_consumer
PE-OWNED

Organic and natural food company producing plant-based beverages, soups, and broths.

PE-OWNED

Acquired by KKR2017-03-27

View PE Firm Profile

What Made It Great

“

Pioneer in organic plant-based beverages with strong natural channel presence

What PE Will Likely Do

Predictions

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

HIGH LIKELIHOODBased on: KKR's history of cost-cutting tactics, such as ingredient downgrade, shrinkflation, supply chain changes, and formula changes, in their past acquisitions

Package sizes for Pacific Foods products will likely be reduced while prices are maintained or increased (shrinkflation)

HIGH LIKELIHOODBased on: The high frequency of these tactics being used in the food and consumer industry, as shown in the industry playbook

Pacific Foods will likely switch to lower-cost suppliers and manufacturing options, resulting in changes to their supply chain

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR, indicating their tactics are often harmful to consumers

Pacific Foods may alter their product recipes to reduce ingredient costs, impacting the taste and nutritional profile of their items

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR, indicating their tactics are often harmful to consumers

Pacific Foods may consolidate and close some of their manufacturing facilities, leading to potential disruptions in production and availability of their products

HIGH LIKELIHOODBased on: The negative consumer impact score of 0.36 for KKR, indicating their tactics are often harmful to consumers

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minimal visible changes as the ownership transition occurs

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Behind-the-scenes changes to suppliers, formulas, and manufacturing begin

12-24 months

“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

Operating

Del Monte Foods

KKR·2011

See full case study
Operating

Birds Eye

Permira·2009

See full case study
Operating

Kraft Heinz

3G Capital·2015

See full case study
Operating

Bumble Bee Foods

Lion Capital·2010

See full case study
Operating

Weight Watchers

Artal Group·1999

See full case study

What You Can Do

Take Action

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

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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"Pacific Foods is now PE-owned. Here's what that means for you."