Instant Pot's Growth Strategy Backfires
Instant Pot's parent company has filed for Chapter 11 bankruptcy as sales in the electronic multicooker device category, where Instant Pot makes up the majority, have declined by 50% since 2020. The company's need to continue growing has led to the development of new products, such as an air purifier and convection oven, but it may need another hit product to recover. The pressure to constantly grow comes from private equity firm Cornell Capital, which acquired Instant in 2019. The company's CEO is encouraging the development of new products instead of reinvigorating the Instant Pot, but sometimes being very good at one thing is enough.