Yellow Schwan trucks have been hauling around the area for 70 years, delivering ice cream, frozen treats and other frozen foods. The yellow trucks and the company behind them will soon get a new look and name: Yelloh.
The new name is a tribute to the history of the company and its familiar yellow trucks. But the company said it’s also a hint of promise and enthusiasm for success in the next 70 years as it plans to invest in new product offerings and new ways to connect with consumers through digital platforms while continuing to rely on direct communication with customers across the route. drivers.
“We thought it was a great name to recognize our heritage, the yellow trucks we’ve been operating for so many years,” said Paul Schwan, Yelloh executive chairman and son of company founder Marvin Schwan. “It’s just fun, bright and at the same time reminds us of who we are and where we come from.”
Marvin Schwan founded the company in 1952 delivering ice cream from his yellow Dodge van in Marshall, Minnesota. The company has since expanded its delivery service and food offerings to 48 states through 300 distribution centers and a fleet of yellow trucks that has grown to over 48 states. than 3200.
In 2018, the Schwan family sold a 70% stake in the restaurants, groceries and other stores business to Korean firm CJ CheilJedang, or CJCJ, for $1.8 billion. This company, Schwan’s Co., operates as a subsidiary of CJCJ while the Schwan family retained ownership of the home delivery business.
This direct-to-consumer delivery business, Schwan’s Home Delivery, is now changing its name to Yelloh, a brand officially launched on Friday. The company’s yellow trucks will get a new look and a new logo.
Yelloh is meant to remind people of the friendly greeting between people who know each other.
“We think it conveys optimism and growth,” said Joe Kirby, president and CEO of Yelloh. “It really reflects the personal connection between our route sellers or our drivers and the communities they work in.”
The rebranding process began in June, involving a small group of people, including members of the Schwan family, and two third-party naming agencies. Their brainstorming sessions generated over 100 names, of which about 10 were seriously rated.
The new name and look will be applied to delivery trucks, as well as food packaging, delivery uniforms, signage and related materials. The process of making all these changes will take more than a year.
The Schwan family continues to own and operate the home delivery business, which has 4,000 employees and is still based in Marshall. Paul Schwahn’s three sons represent the third generation of family ownership and business.
“From the beginning, our determination, combined with our desire to meet people where they are, is what has made our company so special,” said Paul Schwan.
The privately held company did not disclose its annual revenue but said it has thrived during the pandemic despite the frozen food industry’s supply chain problems and inflationary pressures.
Schwan did point to 30 percent growth at Amazon, Target and other retailers that have done well over the past two years and said they are keeping up with that growth rate.
They have also faced increased competition with the expansion of grocery delivery companies such as DoorDash, InstaCart and Shipt.
Yelloh said its business model has the edge. Their cold chain ensures that food stays frozen from their distribution center to their trucks and their customers’ freezers.
“What makes our business different is that you don’t have an anonymous person who brings you food,” Kirby said. “This is our itinerary salesman who knows your needs.”