Stella & Chewy's
Premium pet food company specializing in freeze-dried raw and natural pet nutrition.
PE-OWNED
Acquired by Bain Capital2019-08-12
What Made It Great
Premium raw pet food positioning in fast-growing natural pet food segment
What PE Will Likely Do
Cheaper ingredients used in Stella & Chewy's pet food formulas, such as replacing high-quality meat proteins with lower-cost plant-based proteins or byproducts
Reductions in package sizes for Stella & Chewy's pet food products while maintaining or increasing prices (shrinkflation)
Changes to Stella & Chewy's supply chain, including switching to lower-cost pet food manufacturers, which could impact quality and consistency
Alterations to Stella & Chewy's pet food recipes to reduce costs, potentially impacting nutritional value and palatability for pets
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 Stella & Chewy's suppliers and pet food formulas begin
“12 to 24 months months”
Consumers start noticing quality differences in Stella & Chewy's pet food products, such as changes in texture, flavor, and nutritional content; brand reputation begins to suffer, and complaints increase
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Closely monitor changes in Stella & Chewy's pet food formulas, ingredient lists, and package sizes
Be aware of any noticeable differences in the quality, texture, flavor, or nutritional value of Stella & Chewy's products
Consider switching to alternative premium pet food brands if Stella & Chewy's quality significantly declines
Voice concerns and complaints to Stella & Chewy's customer service if you notice quality degradation
Alternatives
Look for family-owned or employee-owned businesses