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Shining a light on PE ownership.

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ST

Stella & Chewy's

food_consumer
PE-OWNED

Premium pet food company specializing in freeze-dried raw and natural pet nutrition.

PE-OWNED

Acquired by Bain Capital2019-08-12

View PE Firm Profile

What Made It Great

“

Premium raw pet food positioning in fast-growing natural pet food segment

What PE Will Likely Do

Predictions

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

MODERATEBased on: Bain Capital's track record of cost-cutting, debt loading, and brand expansion tactics in other acquisitions

Reductions in package sizes for Stella & Chewy's pet food products while maintaining or increasing prices (shrinkflation)

MODERATEBased on: The industry playbook for private equity firms in the food/consumer sector, which indicates a high frequency of ingredient downgrades, shrinkflation, supply chain changes, and formula changes

Changes to Stella & Chewy's supply chain, including switching to lower-cost pet food manufacturers, which could impact quality and consistency

MODERATEBased on: The premium positioning and natural/raw focus of Stella & Chewy's pet food, which makes it a likely target for cost-cutting measures to improve profitability

Alterations to Stella & Chewy's pet food recipes to reduce costs, potentially impacting nutritional value and palatability for pets

MODERATEBased on: The premium positioning and natural/raw focus of Stella & Chewy's pet food, which makes it a likely target for cost-cutting measures to improve profitability

Expected Timeline

Phases
0-6 monthsCompleted

“0 to 6 months months”

Minimal visible changes as Bain Capital completes the ownership transition

6-12 monthsYOU ARE HERE

“6 to 12 months months”

Behind-the-scenes changes to Stella & Chewy's suppliers and pet food formulas begin

12-24 months

“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

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What You Can Do

Take Action

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

Research independent alternativesSAFE

Look for family-owned or employee-owned businesses

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"Stella & Chewy's is now PE-owned. Here's what that means for you."