Schwan's yellow delivery trucks have been rolling through neighborhoods for 70 years delivering ice cream, frozen treats and other frozen foods. The yellow trucks and the company behind them will soon have a new look and name: Yelloh.
The new name is a nod to the company's history and its familiar yellow trucks. But the company said it's also a nod to the 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 connection with customers through route drivers.
"We thought it was a great name to recognize our heritage, the yellow trucks that we've been operating for so many years," said Paul Schwan, executive chairman of Yelloh and son of company founder Marvin Schwan. "It's just fun, vibrant, and at the same time reminiscent of who we are and where we come from."
Marvin Schwan founded the company in 1952 delivering ice cream from his yellow Dodge panel van in Marshall, Minn. The company has since expanded its delivery service and food offerings to 48 states through 300 distribution hubs and a fleet of yellow trucks that has grown to more than 3,200.
In 2018, the Schwan family sold a 70% share of a business that serves restaurants, groceries and other retailers to Korean firm CJ CheilJedang, or CJCJ, for $1.8 billion. That company, Schwan's Co., operates as a subsidiary of CJCJ, while the Schwan family maintained ownership of the home delivery business.
That direct-to-consumer delivery business, Schwan's Home Delivery, is now changing its name to Yelloh — branding that officially launched Friday. The company's yellow trucks will get a new look and carry their new logo.
Yelloh is meant to remind people of a friendly greeting between people who know each other.
"We think it conveys optimism and and growth," said Joe Kirby, president and chief executive of Yelloh. "It really reflects the personal connection that we have between our route salespeople or our drivers and the communities in which they operate."
The rebranding process started in June with a small group of people, including Schwan family members, and two outside naming agencies. Their brainstorming sessions generated more than 100 names, of which about 10 were seriously evaluated.
The new name and look will apply to its delivery trucks, as well as food packaging, delivery uniforms, signage and related materials. The process to make all those 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 it remains based in Marshall. Paul Schwan's three sons represent the third generation of the family's ownership and operation.
"Since the beginning, our can-do attitude coupled with a desire to meet people where they're at is what has made our company so special," Paul Schwan said.
The private company didn't disclose its annual revenue but said they've thrived during the pandemic despite the frozen food industry's supply chain problems and inflationary pressures.
Schwan did point to the 30% growth at Amazon, Target and other retailers that have done well during the last two years and said they've kept pace with those growth rates.
They've also faced increased competition with the expansion of grocery pickup and delivery companies like DoorDash, InstaCart and Shipt.
Yelloh said its business model has an advantage. Their cold chain ensures foods remain frozen from their distribution center to their trucks to their customer's freezers.
"The differentiator with our business is you don't have an anonymous person dropping off your foods," Kirby said. "It's our route salesperson who knows your needs."
