Carmel Pratt, a construction consultant from Congers, N.Y., initially purchased an Instant Pot in late 2019 as a replacement for multiple appliances. Over the years, Pratt has continued to use her Instant Pot regularly and sees no need to upgrade to a newer model. This type of consumer behavior is one of the reasons why Instant Brands, the parent company of Instant Pot, Pyrex, and CorningWare, recently filed for Chapter 11 bankruptcy.
According to industry experts, the multicooker market is now saturated, with declining sales being a significant factor in Instant Brands’ financial struggles. Market research firm Circana reported a 50 percent decline in multicooker sales in 2021 compared to the previous year. The margins in the cooking hardware industry, especially countertop gadgets, are relatively low, and consumers can be reluctant to purchase new appliances.
Ben Gadbois, the CEO of Instant Brands, acknowledged that the company is facing challenges related to macroeconomic and geopolitical factors but remains committed to its operations. Instant Brands secured $132.5 million in funding and filed for Chapter 11 bankruptcy to give the company time and flexibility to improve its financial situation.
Instant Pot gained popularity in the mid-2010s and became a top-selling item on Amazon Prime Day in 2016. The company’s success was fueled by effective marketing strategies, including collaborations with influencers, bloggers, and media outlets. However, post-pandemic trends have negatively impacted Instant Brands, similar to other companies like Peloton.
Despite the challenges faced by Instant Brands, there is uncertainty about the future of Instant Pot, Pyrex, and CorningWare. It is possible that the company successfully reorganizes during the bankruptcy process and finds a new equity partner to continue operations. In some cases, failing companies acquire more debt and eventually file for Chapter 7 liquidation. The brands themselves may still survive if another company acquires their intellectual properties or if Instant Brands is sold to a different entity.
Regardless of the outcome, many consumers like Carmel Pratt plan to continue using their Instant Pot due to its convenience and ease of use.
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