Did Schwan’s Go Out of Business? The Definitive Answer & What Happened

No, Schwan’s has not gone out of business. While the iconic brand and business model experienced significant changes in recent years, Schwan’s Company continues to operate, albeit under different ownership and with a somewhat altered business focus. Let’s delve into the details of what happened to this household name, how it evolved, and what its current status is.

The Evolution of Schwan’s: From Delivery Truck to Multi-Billion Dollar Company

The story of Schwan’s is a classic American success story. Founded in 1952 by Marvin Schwan in Marshall, Minnesota, the company initially specialized in delivering ice cream directly to rural customers. This innovative direct-to-consumer model, utilizing refrigerated trucks, proved immensely popular, especially in areas where access to grocery stores was limited.

Building a Frozen Food Empire

Over the decades, Schwan’s expanded its product line significantly beyond ice cream. The company added a vast array of frozen foods, including frozen pizzas, appetizers, entrees, and desserts. Their delivery network grew exponentially, reaching millions of homes across the United States. The Schwan’s delivery truck became a familiar and welcome sight in many neighborhoods.

Strategic Shifts and Divestitures

The late 2010s brought significant changes to the Schwan’s Company. In 2018, the Schwan family, who had owned and operated the company for generations, decided to sell a majority stake in the business to CJ CheilJedang, a South Korean food company. This marked a major turning point in Schwan’s history.

The deal involved the sale of Schwan’s consumer brands, which included the home delivery business, as well as popular brands like Red Baron, Freschetta, and Tony’s pizza. The Schwan family retained a minority stake and continued to operate the food service and Asian food divisions of the company.

Focus on Food Service and Asian Cuisine

Following the sale, Schwan’s Company (under its new ownership) focused its efforts on its food service business, supplying frozen foods to restaurants, schools, hospitals, and other institutional customers. The company also doubled down on its Asian food division, producing and distributing a wide range of Asian-inspired frozen meals and appetizers.

Schwan’s Today: Still Thriving, But Different

Today, Schwan’s Company remains a major player in the food industry. While the iconic home delivery service is still operational, it’s now managed under different ownership and operates independently from the food service and Asian food divisions. The company is committed to innovation and quality, continuing to serve its diverse customer base. So, while the Schwan’s you remember from your childhood might be different, the company is far from gone. It has simply evolved to meet the changing demands of the market.

Frequently Asked Questions (FAQs) About Schwan’s

Here are some frequently asked questions to provide a comprehensive understanding of the current state of Schwan’s.

1. Is Schwan’s Home Delivery still a thing?

Yes, Schwan’s Home Delivery still exists. It’s now owned by Yelloh, which acquired it from CJ CheilJedang. Yelloh continues to operate the direct-to-consumer delivery service, offering a wide range of frozen foods and groceries delivered directly to your door. They’ve even updated their branding and delivery model to better suit modern consumer preferences.

2. Who owns Schwan’s now?

The Schwan’s Company (specifically the food service and Asian food divisions) is owned by the Schwan family and CJ CheilJedang. The Schwan family retained a minority stake after selling a majority interest to CJ CheilJedang in 2018. Schwan’s Home Delivery is now a part of Yelloh.

3. What happened to the Red Baron pizza brand?

Red Baron pizza is still widely available. It was part of the consumer brands portfolio that was sold to CJ CheilJedang and is now owned by Yelloh. You can find Red Baron pizza in most major grocery stores across the United States.

4. Where is Schwan’s headquarters located?

Schwan’s Company headquarters remains in Marshall, Minnesota. This is where the company was founded and where its core operations are still based.

5. Does Schwan’s still use the same delivery trucks?

The Yelloh delivery trucks are still refrigerated, but they have undergone some changes in design and branding. While the iconic yellow trucks are still recognizable, they now sport the Yelloh logo and reflect a more modern aesthetic.

6. What kind of food does Schwan’s (food service division) sell?

The Schwan’s food service division sells a wide range of frozen foods to restaurants, schools, hospitals, and other institutional customers. This includes appetizers, entrees, desserts, and bakery items. They focus on providing high-quality, convenient food solutions for large-scale operations.

7. What is CJ CheilJedang’s role in Schwan’s?

CJ CheilJedang is a major shareholder in Schwan’s Company. They bring significant resources and expertise to the company, particularly in the areas of food manufacturing and distribution. Their involvement has helped Schwan’s expand its reach and innovate in new markets.

8. How has the pandemic affected Schwan’s?

The pandemic presented both challenges and opportunities for Schwan’s. The food service division faced disruptions due to restaurant closures and school shutdowns. However, the Asian food division saw increased demand as consumers sought convenient and flavorful meal options at home. The Yelloh home delivery service also experienced a surge in popularity as people looked for ways to avoid crowded grocery stores.

9. Is Schwan’s considered a sustainable company?

Schwan’s Company has implemented various sustainability initiatives to reduce its environmental impact. These efforts include reducing waste, conserving energy, and sourcing sustainable ingredients. The company is committed to continuous improvement in its sustainability practices.

10. What are some of Schwan’s most popular products?

While the offerings vary depending on the division (food service, Asian foods, or Yelloh home delivery), some of Schwan’s most popular products include Red Baron pizza, various appetizers and entrees for food service clients, and a wide selection of frozen Asian meals under different brands. The specific popular items depend on the customer segment.

11. How can I order from Schwan’s Home Delivery (Yelloh)?

You can order from Yelloh through their website or mobile app. Simply create an account, browse their selection of frozen foods and groceries, and place your order. You can schedule a delivery time that is convenient for you.

12. What is the future of Schwan’s Company?

The future of Schwan’s Company looks promising. With its strong brands, experienced management team, and strategic partnerships, the company is well-positioned for continued growth. The focus on food service and Asian cuisine provides a solid foundation for expansion, and the company is committed to innovation and quality to meet the evolving needs of its customers. The brand has evolved, and is embracing the future while still providing quality frozen foods.