Family Business Re-Acquired

Annies, the family-owned fruit snack business, started in 1986 when Graeme Giles gave his partner Annie a small harvest maid dehydrator as a wedding present. The Giles family has farmed the Radford property with various crops and fruits (apart from tropical) for 130 years.

With a surplus of fruit from their Highway One Vegetable Market, Annie began converting apples, strawberries, and plums, into fruit rolls for sale in the couple's shop using the new dehydrator.

The pair made 1000 thousand rolls in the first year and 5000 in the second.

“It was great backup during our early farming days with 28 percent interest and removal of subsidies,” shared Graeme.

The business grew debt-free for 15 years as the pair dried and packed three million bars in their cottage factory of 12 staff.

New Zealand supermarkets were on board, with Australia’s supermarkets Coles and Woolworths following quickly behind. In 2005 the Giles couple committed to buying a new 2000 square metre production facility, which coincided with an interest in Annies from the major U.S.A company, Trader Joe's, by an extension of Aldi Germany.

Giles's first order of eight million bars was a challenge to produce. However, Graeme shared that the sales. The pair regularly supplied 18 million in two years, where Annies had established markets in Germany, the United Kingdom and France. The company’s drying capacity grew to 3000 tonnes of puree annually.

“The business was strong and supported the low grape prices in our farming package for two years in early 2011 and 2012. We were improving the systems continually and automating where possible.”

Graeme revealed that, late in 2012, the Annies’ management team had changed private label packaging without the awareness of its implications, resulting in Trader Joe’s withdrawing the Annies product from its shelves. While the company had strong structures, the Giles family couldn’t sustain the resulting cash-flow impact.

“In the resulting receivership, Annies was sold to the Nelson Iwi Wakatu.”

Graeme shared that the Iwi’s food division, Kono Foods bought the business in 2013, and within eight months, Trader Joe’s came back on board.

Kono Foods have maintained equipment, markets, and systems for the last ten years to keep the brand active in New Zealand and overseas markets. With significant interests, and a need to rationalise, the Iwi closed Annies in December 2022, leaving a void and shock in the market.

Graeme stated that as the owners of the factory building, and the brand's history, the Giles family felt they could not walk away. As a result, the Giles family negotiated a purchase of all equipment, brand and intellectual property. Annies were back in the original ownership.

“We are extremely passionate about the brand and the ongoing potential for the simple natural fruit bars with no additives and no allergenic properties.”

Annies fruit snacks are great for kids, and adults, who are health conscious and cater to those with gluten or nut allergies and sensitivities. Supermarkets have supported Annies and its continuation, and other parallel markets are ongoing.

The new generation of Annies’ owners includes Annie and Graeme’s daughter Cabie, her partner Dan, and the grandchildren, Thomas and Freya.

Graeme stated that the children would be the face of the brand, with Annie’s support in the background. The passion to retain and grow the brand is foremost with six generations on the property. However, spreading the load is always essential.

The Giles family shared that they are excited to have Ant Moore (Ant Moore Wines ) and his family join the Giles family as partners.

The brand's strength and simplicity allow Giles to branch into other value-added natural food products. Graeme reveals that the brand already had several exciting projects, including variants with HiFi Wheat Fibre, pre and probiotics, and protein.

Annies are also working with innovative food developers in the Hemp Industry.

The Giles family will take over the business in the next few weeks, with Kono continuing to supply Supermarket channels with finished goods until the end of July.

For any queries or information, please contact Graeme, Annie Giles, and the new generation team at Annies 02 1910 484. n