After 72 years in business, Schwan's Home Delivery — also known as Yelloh after a 2022 brand refresh — has parked its famous yellow trucks for good. In a statement, the company cited "multiple insurmountable business challenges" as the reason for the closure, but some former employees and retail analysts say that Schwan's failed to evolve with the times, and its last-ditch efforts were simply too late.
According to the New York Times, Schwan's difficulties began in the late 1980s, when fewer people remained at home during the day to accept deliveries and relationships between longtime drivers and customers faded. Competition from membership stores like Costco and Sam's Club further eroded Schwan's market share, and regulatory changes further impacted truck operations.
By the 2010s, the grocery delivery service seemed mostly old-fashioned compared to mobile shopping options at conventional grocery stores and platforms like Instacart.
Schwan finally moved to update its business model in 2018, selling an 80 percent stake to South Korean food company CJ CheilJedang — a deal that included the entire frozen food business (including well-known brands like Mrs. Smith's, Red Baron, Schwan's, and Freschetta), though Schwan's still retained ownership of the delivery business. In 2022, the company rebranded itself as Yelloh, thus distancing itself from a brand with a decades-long heritage And in early 2024, Schwan broke its last link with history when Yelloh trucks ceased carrying Schwan's brand frozen foods entirely, including its beloved ice cream.
The Schwan's Company, which supplies grocery stores and other food-service outlets, is still in business