In 2019, Schwan’s was acquired by South Korea’s CJ CheilJedang for $1.8 billion and became Yelloh, a company with iconic yellow trucks. However, Yelloh is facing a more competitive market with the rise of food delivery apps like Instacart and Uber Eats. As a result, the company has made the difficult decision to reduce its service area and lay off employees.
Starting this summer, Yelloh will be sending its yellow delivery trucks to fewer locations across the state and country. This marks the second reduction in service area for the company within a year, with 44 employees being laid off in Minnesota and delivery sites closing down in various locations across the state and country. Despite efforts to turn the business around locally, Yelloh has decided that these depots are not profitable enough to continue operating.
However, shipping will still be available nationwide via UPS. Founded in 1952 as a rural ice cream delivery service in Minnesota, Schwan’s expanded to become a nationally recognized company with its iconic yellow trucks. The transition from Schwan’s to Yelloh has caused some dissatisfaction among customers with the company’s offerings. Despite these challenges, Yelloh remains committed to supporting its impacted team members and customers as they transition to online or app-based ordering solutions.
