Yelloh, a meal delivery company, is laying off 750 people and closing 90 delivery stations around the country.
Yelloh, formerly known as Schwan’s Home Delivery, is eliminating 750 jobs and closing 90 delivery sites around the country. The Bloomington, Minnesota-based company’s shutdown will begin on December 8. The company’s famous yellow trucks will continue to serve 18 states. Customers in other areas would receive deliveries through UPS, according to the Minneapolis Star Tribune on Friday.
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“Facing economic headwinds, rising business costs and the post-pandemic world, our teams across the country have worked valiantly to transform our company into a modern category leader,” the company said in a press release. “Despite those efforts, and like many retail businesses, we must now close locations and face a difficult reality.”
Yellow truck deliveries will continue in Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Pennsylvania, South Dakota, Texas, Vermont, West Virginia, and Wisconsin.
In 1952, Schwan’s began home delivery. The Schwan family sold a 70% stake in its company to the Korean corporation CJ CheilJedang for $1.8 billion in 2018. Schwan’s Home Delivery business, meanwhile, was retained by the family and relaunched as Yelloh last year.
Yelloh?
Schwan’s firm, previously The Schwan Food Company, is a food firm that employs roughly 7,500 people. Since 2019, the firm has become a subsidiary of CJ CheilJedang of South Korea, having originated in the United States as a family-owned corporation with five key business units, including Schwan’s Consumer Brands, Schwan’s Food Service, Strategic Partner Solutions, and SFC Global Supply Chain. Schwan’s Company no longer owns the home-delivery company formerly known as Schwan’s Home Service, which is in the process of rebranding to Yelloh.
The Schwan family owns 100 percent of Minnesota-based Schwan’s Home Service, a privately held, independent organization that can be traced back to Marvin Schwan’s home-delivery service, which he founded in 1952. Schwan’s Home Service provides frozen goods through home delivery vans, grocery store freezers, the mail, and the food service industry.
Consumer brands such as Freschetta Pizza, Tony’s Frozen Pizza, Mrs. Smith’s Pies, Edwards Frozen Pies, Pagoda Egg Rolls, and Red Baron Pizza are well-known.
Company history
Marvin Schwan (1929-1993) started home delivery of his family’s homemade ice cream (Schwan’s Dairy and Dairy Lunch) to rural western Minnesota in 1952. Schwan’s grew into the Midwestern United States and acquired several companies, including the Holiday Ice Cream Company and Russell Dairy. Schwan’s product line was expanded to include juice concentrates in 1957, and frozen fish items were introduced in 1962.
The company began distributing pizza to schools in the 1970s, established the Red Baron pizza brand for sale in grocery stores, and formed the Red Baron Squadron flight team to promote the brand. Schwan’s made more purchases in the 1980s, including pizza company Sabatasso Foods and Asian-food manufacturer Minh Food Corporation. In 1989, Schwan’s established a facility in Leyland, Preston, England. Schwans Canada was founded in 1990, with an ice cream plant in Manitoba and routes in Saskatchewan and Alberta, but it terminated operations in December 1999.
Marvin Schwan, the company’s founder, died of a heart attack in 1993, at the age of 64. Marshall’s Marvin Schwan Memorial Drive is named for him. Alfred Schwan, his older brother and the company’s head of manufacturing, was made president.
The Minnesota Department of Health notified the firm in October 1994 that 67 people in southern Minnesota had been sick with salmonella enteritis, with a significant statistical correlation between the infections and Schwan’s ice cream. Schwan immediately ceased production and sales of its ice cream and launched a public-awareness campaign urging consumers not to consume Schwan’s ice cream products. An examination determined that the contamination came from a contractor’s truck that had supplied ice cream pre-mix to Schwan’s. After shipping raw, unpasteurized eggs, the trucking business failed to properly clean the tanker truck. Schwan’s efforts in reaction to the recall were novel at the time, and they have since been emulated by other firms dealing with recalls.
Frequently asked questions
Who is the CEO of Schwan’s Food Service?
Dimitrios Smyrnios
How big is Schwan’s company?
Schwan’s has over $3 billion in annual sales and employs approximately 12,000 people. Red Baron, Freschetta, and Tony’s pizzas, Mrs. Smith’s pies, Edwards desserts, and Pagoda Asian-style snacks are among the company’s frozen and ready-made offerings.
Where is Schwan’s based?
Minnesota
Click here to learn about Yelloh.
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