Perdue Farms
Major poultry producer and processor of chicken, turkey, and pork products.
PE-OWNED
Acquired by Bain Capital2020-02-15
What Made It Great
Integrated poultry operations with strong brand recognition in chicken processing
What PE Will Likely Do
Perdue Farms will likely replace higher-quality chicken and turkey ingredients with cheaper alternatives, reducing the protein content and nutritional value of their products.
Perdue will likely implement 'shrinkflation' by reducing package sizes for their chicken and turkey products while maintaining or increasing prices.
Perdue will likely switch to lower-cost poultry suppliers and manufacturing facilities, which could lead to inconsistencies in product quality and taste.
Perdue may alter the recipes for their chicken, turkey, and pork products to reduce costs, potentially changing the flavor profiles that consumers are used to.
Perdue will likely consolidate their poultry processing facilities, which could lead to temporary supply chain disruptions and availability issues for certain products.
Expected Timeline
“0 to 6 months months”
Minimal visible changes as Bain Capital completes the ownership transition.
“6 to 12 months months”
Behind-the-scenes changes to Perdue's suppliers and product formulas begin, but consumers may not yet notice a difference.
“12 to 24 months months”
Consumers start to notice quality differences in Perdue's chicken, turkey, and pork products, such as smaller portions, changes in texture or flavor, and inconsistencies in availability.
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Monitor for changes in the quality, taste, and nutritional value of Perdue's chicken, turkey, and pork products.
Be aware of potential package size reductions or price increases for Perdue products.
Consider switching to alternative poultry brands that maintain higher quality standards if Perdue's product quality deteriorates.
Alternatives
Look for family-owned or employee-owned businesses