Schwan’s, rebranded as Yelloh, just shut down: The Risks of Total Rebranding
Schwan’s, the iconic American food delivery service, shut down. In 2022, Schwan’s rebranded as Yelloh. Two years later, the company shuttered its business. How much was its new name to blame? In a fast-changing world, brands may see the chance to update their logos, visual identities, and even names as a shortcut to keep up with the times. But take a rebrand too far and you could lose everything. That’s especially true for long-running brands, which stand to lose valuable brand equity if they jettison too many assets.
The Evolution and Identity of Schwan’s
Founded in 1952, Schwan’s was known for its swan logo, yellow trucks, and frozen comfort food, from ice cream cups to lasagna. In 2019, Schwan’s sold portions of its business to South Korean company CJ CheilJedang, but family members retained the part of its business called Schwan’s Home Delivery, which was eventually renamed to Yelloh and underwent a total rebrand.
Though the yellow delivery vans stayed, the swan logo went, and the renamed company used a new, more contemporary sans-serif logo in an effort to compete visually in the crowded landscape of Instacart and Uber Eats. Carolina Badaró, vice president of e-commerce and data analytics for Yelloh, tells Fast Company the rebrand “embodied the warmth of its iconic yellow delivery vehicles and the familiar greeting that reflected the company’s optimistic spirit.”
The Factors Behind the Shutdown
But the newly named company couldn’t find its footing. In September, Yelloh announced it was shutting down due to changes in consumer habits, nationwide staffing challenges, and the supply chain struggles it had faced since the start of the pandemic. Losing access to trusted brand assets didn’t seem to help. It faced headwinds as a new generation of consumers began ordering food on delivery apps.
“When you lose touch with the consumer who made you, and they don’t understand, then they’re going to show you with their wallets,” says Mark Christou, principal at branding agency CBX. His advice? Be measured and thoughtful. “What I’d advise brands not to do is to try and change too much all at once. Don’t change your name, don’t change your identity, don’t change your business model all in the same go and hope that they all work out,” Christou says.
Comparative Brand Strategies
For well-established brands, incremental brand changes are key to ensuring that customers won’t be confused or left behind—a benefit Yelloh didn’t have when it came to losing its old name. The following table highlights the difference in strategy between Yelloh and its new partner, Omaha Steaks:
| Brand | Founded | Strategy Approach | Current Status |
|---|---|---|---|
| Schwan's / Yelloh | 1952 | Total rebrand, name change in 2022. | Shuttered business; operations ceased in 2024. |
| Omaha Steaks | Over 100 years ago | Incremental advancements, maintains heritage. | Enjoys high awareness and esteem. |
“At Omaha Steaks, our 107-year-old brand enjoys high levels of awareness and esteem, and we make brand advancements very carefully and always with our customers at the table,” Todd Simon, Omaha Steaks chairman, says. The company proudly advertises its heritage with the tagline “America’s Original Butcher” in its logo.
The Legacy of the Name
Operations have ceased, but Yelloh now offers its customers products through a partnership with Omaha Steaks, a family-owned company that goes back five generations and sells a wide assortment of food, including via subscriptions. Other brands can still learn a lesson about the risks of rebrands that could alienate even loyal customers. I think there has to be a very calculated business decision on when you rebrand and how you rebrand and why you’re rebranding.
