Schwan's (Now Yelloh) Is Shutting Down After 72 Years In The Food Delivery Business

Yelloh is calling it quits. The company formerly known as Schwan's will officially terminate operations by the end of November, 2024. The announcement from this Minnesota-based business comes after years of an upstream fight to stay relevant in a changing market. Yelloh's business model of doorstep frozen food distribution faced serious competition from the rise of online shopping for grocery delivery.

Additionally, personnel challenges and supply chain issues due to the Covid-19 pandemic ultimately proved impossible for the already struggling company to surmount. The 2018 sale of a majority stake of the business to a South Korea-based company called CJ CheilJedang, a huge rebrand to Yelloh in 2022, significant downsizing in 2023, and a last-shot private equity investment were not enough to keep the company's head above water. Lay-offs are imminent, though at least 176 Minnesota employees will be kept on the payroll until November 22. It is unclear exactly how the termination of employment for approximately 1,100 nationwide employees will proceed in the coming months.

The Schwan's name, however, continues through Schwan's Company, a frozen food manufacturing business. This division of the brand, which became independent of Yelloh in 2019, produces branded products found in grocery store freezer aisles and food service venues across the United States. Schwan's Company offerings include popular frozen staples like Red Baron pizza and Bibigo snacks and appetizers.

Founded in 1952, the bread and butter of the Schwan's service was always a fleet of iconic yellow freezer trucks that delivered frozen foods straight to customers' doors. The enterprise was uniquely important for folks living in rural areas that did not have easy access to supermarkets. Over the years, the company expanded within the frozen food industry, offering a wide range of private label products in a grocery store setting under brands such as Red Baron, Tony's, Freschetta, Pagoda, Minh, and more.

Best selling products of Yelloh's service included items such as chicken pot pie, Southern-style biscuit dough, whole green beans, pecan caramel rolls, and breaded chicken strips. Each offering had thousands of shining reviews, with many commenting on the consistency, quality, and great taste of their favorite dishes. Some more recent reviews began to mention a decline in quality, changed recipes, and issues with products being consistently out of stock.

The news about the business going under is also reflected in the reviews. One person commented on the Yelloh website: "You've closed my best source for getting food. I am a widow and seldom get out for shopping. I'm 82." Another remarked, "Sad day. Said goodbye to our Yelloh driver." For those waxing nostalgic, products will still be available for purchase until November 8.