Arnott's Group Explained

Arnott's Group
Type:Subsidiary
Industry:Biscuits
Snack food
Location:North Strathfield, Sydney, New South Wales, Australia
Area Served:Worldwide
Revenue:A$1.04 billion
Revenue Year:2018
Parent:KKR

Arnott's Group is an Australian producer of biscuits and snack food.[1] Founded in 1865 by William Arnott, they are the largest producer of biscuits in Australia and a subsidiary of KKR.[2]

History

In 1847, Scottish immigrant William Arnott opened a bakery in Morpeth, New South Wales.[3] Later in 1865 he moved to a bakery on Hunter Street, Newcastle, providing bread, pies and biscuits for the townspeople and the ships docking at the local port.[4] Until 1975 the company was under family control with the descendants of William Arnott, including Halse Rogers Arnott and Geoffrey H. Arnott, acting as Chairman.

Arnott's, in common with the majority of Australian biscuit manufacturers, operated primarily in its home state, New South Wales, but has manufacturing plants in Virginia, Queensland (manufactures only plain, cream and savoury biscuits) and Shepparton, Victoria. In 1949 it merged with Morrows Pty Ltd, a Brisbane biscuit manufacturer, forming William Arnotts, Morrow Pty Ltd.[5] In the 1960s, a series of amalgamations and acquisitions in the Australian market resulted in the creation of the Australian Biscuit Company Pty Ltd.[6] This included Arnotts and other companies such as Brockhoff Biscuits,[7] Arnott-Motteram[8] and Menz[9] in South Australia, Guest's Biscuits[10] in Victoria, and Mills and Ware in Western Australia.[11] The Australian Biscuit Company was later renamed Arnott's Biscuits Pty Ltd.

In 1997, Arnott's Biscuits was subject to an extortion bid by Queenslander Joy Ellen Thomas, aged 72 years,[12] who allegedly threatened to poison packets of Arnott's Monte Carlo biscuits in South Australia and Victoria. The company conducted a massive recall and publicity campaign, publishing the extortionist's threats and demands in full-page newspaper ads.[13] However, Ms. Thomas was not charged with any offence as the prosecution dropped the case against her because of conflicting evidence.[13] The recall cost the company A$22 million, but Arnott's was praised for its openness and honesty in dealing with the crisis.[14]

In 1997, the Campbell Soup Company of North America, a shareholder of Arnott's since the 1980s, acquired Arnott's in full. Thus, in 1997, Arnott's Biscuits Ltd became a wholly owned subsidiary of the Campbell Soup Company.[15] This caused a significant amount of controversy in Australia, based on the desire for such an Australian icon to remain in Australian hands, and a fear that Campbell's would Americanise the products.[16]

Manufacturing of Arnott's biscuits, however, remained in Australia, and as part of a long-term expansion plan, Arnott's closed its Melbourne factory in September 2002.[17] At the same time, it expanded its facilities in Sydney, Adelaide and Brisbane.[18]

In 2002, Arnott's acquired Snack Foods Limited.[19] In April 2008, Campbell Arnott's sold Arnott's Snackfoods to The Real McCoy Snackfood Co. and the company is now known as Snack Brands Australia.[20]

In July 2019, Campbell Soup Company agreed to sell Arnott's to KKR for $US2.2 billion.[21] [22] Just weeks after the sale, Arnott's was in a public dispute with Woolworths Supermarkets, which reportedly wanted to charge higher prices for marketing displays. Sources said the dispute had begun in May before agreement was reached for the sale of Arnott's to KKR.[23] In August 2020, the company was renamed Arnott's Group.[24]

In December 2020, Arnott's announced it would acquire the cereal and snack company Freedom Foods Group for .[25] In February 2021, Arnott's acquired a 75 per cent stake in Diver Foods. Arnott's established the Good Food Partners division to manage operations from the two acquisitions.[26] In May 2021, Arnott's acquired the New Zealand cracker company 180degrees.[27]

In June 2023, Arnott's opened a new factory in Avondale, New Zealand. It marked the company's return to manufacturing in the country after a 25-year absence.[28] In August 2023, Arnott's opened a 43,000sqm automated distribution centre at its Huntingwood site.[29]

Products

Arnott's are well known in Australia and internationally for producing several quintessentially Australian biscuits. Some of their major products include:

a sweet, vanilla-flavoured biscuit similar to a rich tea biscuit.

Further reading

External links

Notes and References

  1. Web site: Campbell Arnott's Submission to National Food Plan Green Paper. 30 September 2012. Campbell Arnott's. Department of Agriculture, Fisheries and Forestry. https://web.archive.org/web/20140908070306/http://www.daff.gov.au/__data/assets/pdf_file/0007/2210992/Campbell-Arnotts.pdf. 8 September 2014.
  2. Web site: Drake . Isobel . 24 April 2009 . Arnott's issues ultimatum to Krispy Kreme . live . https://web.archive.org/web/20140908065654/http://ausfoodnews.com.au/2009/04/24/arnotts-issues-ultimatum-to-krispy-kreme.html . 8 September 2014 . Australian Food News.
  3. Web site: 2018-09-01 . Aussie legend Arnott's up for sale . 2022-04-04 . Retail World Magazine . en-AU.
  4. Web site: Our heritage. Arnott's Australia: Arnott's heritage. https://web.archive.org/web/20150326190604/http://www.arnotts.com/about-us/arnotts-heritage.aspx. 26 March 2015. dead. 25 October 2018.
  5. News: 31 December 1949. Advertising. 3. The Courier-Mail. 4087. Queensland, Australia. live. 15 September 2020. National Library of Australia. 15 September 2020. https://web.archive.org/web/20200915093534/https://trove.nla.gov.au/newspaper/article/49700955.
  6. Web site: 1990-02-16 . ARNOTTS GOES BACK TO BISCUIT BASICS . 2022-04-04 . Australian Financial Review. en.
  7. News: 1963-06-06 . Biscuit Firms Plan Merger . . 2022-04-04.
  8. Web site: Adelaide's Motteram biscuit legacy lost in the mesh with Menz and Arnott's takeover . 2022-04-04 . adelaideaz.com.
  9. Web site: 2022-01-12 . Menz drops original name in sweets rebrand . 2022-04-04 . InDaily . en.
  10. Web site: 2021-09-24 . A Cracker Of An Idea That Really Took The Biscuit-2021 News . 2022-04-04 . hillstohawkesbury.com.au . en-GB.
  11. Web site: 2021-09-24 . Remembering Mills and Ware . 2022-04-04 . Community News . en.
  12. Web site: Biscuit extortion case dropped over DNA hurdle. 27 April 2002. live. https://web.archive.org/web/20150924115921/http://www.smh.com.au/articles/2002/04/26/1019441296856.html. 24 September 2015.
  13. [Radio National]
  14. The 7.30 Report

    Mars, snickers threat aimed at unnamed organisation, Australian Broadcasting Corporation, 4 July 2005.

  15. Web site: 1990-09-28 . Arnott's ownership passed to Campbell's - Australian food history timeline . 2022-04-04 . Australian Food Timeline . en-AU.
  16. Web site: Druce . Alex . 2019-07-24 . Arnott's gobbled up in $US2.2bn sale . 2022-04-04 . The Canberra Times . en-AU.
  17. Moynihan, Stephen: Tearful workers feel the final crunch at Arnott's, The Age, 3 August 2002.
  18. Web site: 2015-08-21 . About Us . 2022-04-04 . The Arnott's Group Careers Careers.
  19. Business Breakfast: Arnotts bids for Snack Foods, Australian Broadcasting Corporation, 6 July 2002.
  20. Web site: 2008-04-28 . The Real McCoy Snackfood Co buys Arnotts snack foods Shop Ethical! . 2022-04-04 . www.ethical.org.au . en-AU.
  21. News: Arnott's sold by Campbells to KKR . 24 July 2019 . ABC News . ABC News . 24 July 2019 . 15 . 25 July 2019 . https://web.archive.org/web/20190725163057/https://www.abc.net.au/news/2019-07-24/arnotts-sold-by-campbells-to-private-equity-group-kkr/11341190 . live .
  22. Web site: Barbarians snatch Tim Tams? Arnott's set to be acquired by KKR in $3b deal. Powell. Dominic. 2019-07-24. Sydney Morning Herald. en. 2019-11-17. 17 November 2019. https://web.archive.org/web/20191117232740/https://www.smh.com.au/business/companies/barbarians-snatch-tim-tams-arnott-s-set-to-be-acquired-by-kkr-in-3b-deal-20190724-p52a71.html. live.
  23. Web site: Arnott's in stand-off with Woolies . Mitchell . Sue . 27 September 2019 . Australian Financial Review. Nine Entertainment . 29 September 2019 . 26 September 2019 . https://web.archive.org/web/20190926232429/https://www.afr.com/companies/retail/arnott-s-in-stand-off-with-woolies-20190926-p52v61 . live .
  24. Web site: Cameron . Nadia . 2020-08-28 . Arnott's Group unveils new corporate logo and expansion plans . 2023-09-09 . CMO . en-au.
  25. Web site: Berry . Kim . 17 December 2020 . Arnott's to buy Freedom Foods' cereals and snacks business for $20m . 9 September 2023 . Food & Drink Business . en.
  26. Web site: Berry . Kim . 9 February 2021 . Arnott's continues acquisitions to grow cereal & snacks business . 9 September 2023 . Food & Drink Business . en.
  27. Web site: Berry . Kim . 14 May 2021 . Arnott's buys premium NZ cracker business . 9 September 2023 . Food & Drink Business . en.
  28. Web site: Prasad . Alka . 2023-09-10 . Watch: Arnott's new Auckland factory will cater for local tastes . 2023-09-09 . NZ Herald . en-NZ.
  29. Web site: Berry . Kim . 2023-08-30 . Arnott's officially opens automated DC to drive growth plans . 2023-09-12 . Food & Drink Business . en.
  30. Web site: 2020-11-25 . These are the discontinued food products we're desperate to have back . 2022-04-27 . Taste.com.au.
  31. Web site: Arno Shortbread Arnott's Arnott's . 2022-04-04 . www.arnotts.com.
  32. Web site: Spence . Andrew . Menz drops original name in sweets rebrand . . 12 January 2022 . 13 February 2022.
  33. Web site: Arnott's Cops Backlash After Changing Logo . 2022-04-10 . WSFM 101.7 Sydney . en-US.
  34. Web site: Boys . Callan . 2019-07-20 . The definitive ranking of every Arnott's Assorted biscuit from worst to very best . 2022-04-27 . Good Food . en-au.
  35. Web site: Caramel Crowns Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  36. Web site: Cheds Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  37. Web site: Chocolate Butternut Snap Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  38. Web site: Chocolate Monte Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  39. Web site: Choc Ripple Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  40. Web site: Chocolate Royals Dark Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  41. Web site: Chocolate Royals Milk Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  42. Web site: Arnott's Wheaten Milk Ratings . 2022-04-10 . Mouths of Mums . en-AU.
  43. Web site: Jatz Clix Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  44. Web site: Parker . Ally . 2022-03-16 . Arnott's Has Gone Full Boujee, Introducing A Range Of Lush New Snacks . 2022-04-27 . Smooth . en-AU.
  45. Web site: Cruskits Original Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  46. Web site: Cruskits Corn Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  47. Web site: Cruskits Light Arnott's . 2022-04-10 . www.arnotts.com.
  48. Web site: Cruskits Rice Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  49. Web site: Cruskits Rye Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  50. Web site: Custard Cream Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  51. Web site: Delta Cream Arnott's Arnott's . 2022-04-10 . www.arnotts.com.
  52. Web site: Farmbake Butter Shortbread Arnott's Arnott's . 2022-04-27 . www.arnotts.com.
  53. News: Lish . Fejer . Penny . Travers . Ginger nut: The Aussie biscuit favourite that varies across the country . . . 20 May 2017 . 20 May 2017 . live . https://web.archive.org/web/20170520120122/http://www.abc.net.au/news/2017-05-20/arnotts-ginger-nut-biscuits-differ-across-australia/8533136 . 20 May 2017 . dmy-all .
  54. Web site: Meier . Melissa . 2020-08-20 . Your favourite Arnott's biscuits ranked, from healthiest to least healthy . 2022-04-27 . Body+Soul.
  55. Web site: 2022-11-26 . Much-loved Arnott's biscuit quietly discontinued during COVID . 2022-12-01 . 7NEWS . en.
  56. Web site: Iced Vo Vo Arnott's Arnott's. 2021-10-30. www.arnotts.com.
  57. Web site: Kingston Arnott's Arnott's. 2021-10-30. www.arnotts.com.
  58. Web site: 2021-08-04 . Arnott's Lattice biscuits have been discontinued . 2022-04-27 . Bestrecipes.com.au.
  59. Web site: Arnotts Milk Coffee 250g. en. https://web.archive.org/web/20171010071711/http://www.winc.com.au/main-catalogue-productdetail/arnotts-milk-coffee-250g/86639878. 10 October 2017. live. 10 October 2017.
  60. Web site: Interesting facts | The Salvation Army Australia. https://web.archive.org/web/20060821103055/http://salvos.org.au/about-us/overview/did-you-know.php. dead. The Salvation Army. Australia. 21 August 2006. www.salvationarmy.org.au.
  61. Web site: Venetian Arnott's Arnott's. 2021-10-30. www.arnotts.com.