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Shining a light on PE ownership.

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SC

Schwan's Company

food_consumer
PE-OWNED

Frozen food delivery and retail company.

PE-OWNED

Acquired by CJ CheilJedang2018-11-01

View PE Firm Profile

What Made It Great

“

Premium frozen foods delivered to your door.

What PE Will Likely Do

Predictions

Schwan's will replace quality frozen ingredients like premium meats and vegetables with cheaper alternatives, resulting in poorer taste and nutritional value

HIGH LIKELIHOODBased on: CJ CheilJedang's known tactics of cost cutting, outsourcing, and product reformulation

Schwan's will reduce package sizes for many of their popular frozen meals and desserts while maintaining or increasing prices (shrinkflation)

HIGH LIKELIHOODBased on: The industry playbook showing high frequency of ingredient downgrades, shrinkflation, supply chain changes, and formula changes in food consumer companies acquired by private equity

Schwan's will switch to lower-cost suppliers for items like packaging, transportation, and distribution, leading to slower delivery times and potentially damaged/defrosted products

HIGH LIKELIHOODBased on: The lack of any recorded failures for CJ CheilJedang, suggesting they are experienced in executing these tactics

Schwan's will alter the recipes and formulas of their premium frozen meals, reducing the quality and authenticity of flavors and textures

HIGH LIKELIHOODBased on: The lack of any recorded failures for CJ CheilJedang, suggesting they are experienced in executing these tactics

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minimal visible changes as ownership transition occurs

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Behind-the-scenes supplier and formula changes begin, not yet noticeable to customers

12-24 months

“12 to 24 months months”

Customers start noticing quality differences in taste, portion sizes, and delivery reliability, leading to increased complaints and brand dissatisfaction

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

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Kraft Heinz

3G Capital·2015

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Bumble Bee Foods

Lion Capital·2010

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Weight Watchers

Artal Group·1999

See full case study

What You Can Do

Take Action

Actions

  • Monitor the quality and portion sizes of your favorite Schwan's products over the next 12-24 months

  • Consider stocking up on any premium Schwan's items you particularly enjoy, as their quality may degrade over time

  • Be prepared to switch to alternative frozen food brands if Schwan's product quality and customer satisfaction decline significantly

Alternatives

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

Share this company's PE status
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"Schwan's Company is now PE-owned. Here's what that means for you."