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Wakefield, Mass. (July 17, 2003) — Annie’s Homegrown, maker of the leading brand of organic and natural pasta meals in the United States, announced that effective today, it has acquired the Simply Organic® mac and cheese, side dish and skillet meal product lines from Frontier Natural Products Co-op, with offices in Norway, Iowa.
The asset purchase agreement includes inventory of the three product lines, as well as licensing rights to the Simply Organic trade name for certain food product categories. Annie’s Homegrown will immediately integrate manufacturing and distribution of these product lines into their existing operations. Financial details of the transaction were not disclosed.
"This opportunity is attractive due to the compelling sales, marketing and operational synergies, as well as the potential to leverage our category leadership across these new product lines," said Paul Nardone, chief executive officer of Annie’s Homegrown. "This acquisition accelerates our growth in the organic food category by expanding our product offerings to reach more consumers."
As the fastest growing segment of the supermarket industry, organic food sales have increased by more than 20% annually during the past decade. Packaged Facts, a research marketing firm, estimates that organic industry product sales reached $11 billion in 2002.
"We are delighted with Annie’s interest in the Simply Organic brand and the potential this purchase provides for the continued growth and development of the macaroni and cheese, side dish and skillet meal lines," said Tony Bedard, chief executive officer of Frontier Natural Products Co-op. "At the same time, we see great opportunities for Frontier to continue to build the Simply Organic bottled spice, seasoning mix and flavor lines, where we have established leadership and expertise."
"We look forward to providing the support this outstanding brand deserves and to creating innovative new products. The shared commitment of Frontier and Annie’s to organics, social responsibility, and product quality is a solid foundation for the continued success of all the Simply Organic lines."
Frontier Natural Products Co-op launched the Simply Organic brand in August 2001. Simply Organic products are available in more than 2,500 supermarkets and more than 600 natural food stores across the United States*.
Founded in 1989, Annie’s Homegrown is a pioneering company in the natural and organic food industry, best known for its macaroni & cheese products. In the past three years, Annie’s Homegrown has made significant advancement into mainstream supermarkets. The company’s sales have increased at a compound annual growth rate of approximately 27%, and it has been profitable. Throughout its history, the 14-year-old company has been recognized for its commitment to providing great-tasting products, as well as supporting its social goals of healthy, responsible, and environmentally friendly living.
* Syndicated data from SPINSscan and A.C. Nielsen ScanTrack
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Simply Organic®, an all-organic brand from Frontier Natural Products Co-op™, offers an extensive and growing selection of certified organic spices, seasonings and baking flavors while supporting organic agriculture around the globe. By providing the best available organic seasonings and donating one percent of sales to organic farming causes, Simply Organic genuinely offers "a way to eat, the way to live." Find out more about Simply Organic at www.simplyorganic.com.
Frontier Natural Products Co-op™
Founded in 1976 and based in Norway, Iowa, Frontier Natural Products Co-op™ offers a full line of natural and organic products under the Frontier, Simply Organic®, Aura Cacia® and Aura Cacia Organics® brands. Products include culinary herbs, spices and baking flavors; bulk herbs and spices; and natural and organic aromatherapy products. Frontier's goal is to provide consumers with the highest-quality organic and natural products while supporting and promoting social and environmental responsibility. For more information, visit Frontier's website at www.frontiercoop.com.