Red Gold Tomatoes
Tomato processing company producing canned tomatoes, sauces, and tomato-based products.
PE-OWNED
Acquired by Golden Gate Capital2020-04-22
What Made It Great
Family-owned tomato processor with strong Midwest market presence
What PE Will Likely Do
Red Gold Tomatoes will likely start using lower-quality tomatoes and cheaper canning methods to reduce costs
Portion sizes for canned tomato products and sauces will likely be reduced while prices remain the same or increase
The company may switch to lower-cost suppliers for ingredients like herbs, spices, and seasonings, resulting in changes to flavor profiles
Some tomato processing facilities may be closed, leading to supply chain disruptions and potential quality inconsistencies
Expected Timeline
“0 to 6 months months”
Minimal visible changes as the ownership transition occurs
“6 to 12 months months”
Shifts to lower-cost ingredients and suppliers begin behind the scenes
“12 to 24 months months”
Consumers start noticing changes in product quality, flavor, and consistency, leading to increased complaints
“24 to 36 months months”
Significant brand reputation damage as product quality continues to decline, potentially leading to market share loss
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Be on the lookout for changes in product quality, flavor, and consistency of Red Gold Tomatoes products
Consider switching to alternative brands or local/regional tomato producers if you notice a decline in Red Gold's product quality
Voice your concerns and feedback directly to the company to hold them accountable for any changes that negatively impact the consumer experience
Alternatives
Look for family-owned or employee-owned businesses