Business and Economic News

Minnesota-based company Yelloh, once better known as Schwan’s, announces November closure

School lunches
In this 2012 photo, Diane Wagner with The Schwan Food Co., hands out samples of food at a booth during the School Nutrition Association conference.
Ed Andrieski | AP

Citing “insurmountable business challenges” Marshall-based Yelloh says it will end its frozen food deliveries on Nov. 8.

Founded in the southwestern Minnesota city 72 years ago with an initial run of ice cream, the company was a pioneer in the frozen food home delivery industry. Its fleet of yellow trucks fanned out across the country delivering food to families where they lived.

However the company says economic and market forces, as well as changing consumer lifestyles, led to a sell-off of a major chunk of the business to a Korean company a few years ago and a rebranding as Yelloh.

Yet, challenges remained and now comes the decision to close.

In a statement CEO Bernardo Santana said it was with “heavy hearts” the company had made the difficult decision to wrap up the company.

“I am deeply grateful for our employees’ tireless and bold efforts, and our customers’ dedication. It has been our utmost pleasure and honor to serve our customers their favorite meals and frozen treats” he said.

Also in the statement longtime board member Michael Ziebell said the concern now was for the impact on employees.

“The current Yelloh team has worked hard against external headwinds such as the nationwide staffing challenges and crushing food supply chain disruption caused by the pandemic,” Ziebell said. “Digital shopping has replaced the personal, at-the-door customer interaction that was the hallmark of the company.”

The Minnesota Department of Employment and Economic Development reported the closure of Yelloh will affect 176 employees in Minnesota.

MPR News reached out to the city of Marshall for comment, but did not hear back before publication.