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To the shock and disappointment of many health-conscious consumers across North America, General Mills purchased beloved organic brand Annie’s Homegrown in an eye-popping deal valued at $820 million, or $46/share.
This is just the latest in a long string of acquisitions of small, natural food companies by huge, multinational corporations in recent years.
The purchase of Annie’s Homegrown, a 25-year-old company whose trademark motto is “Real Food Tastes Better” is particularly hard to take for parents because Annie’s products are focused and targeted to children.
John Foraker, CEO of Annie’s Homegrown (not to be confused with the privately held company Amy’s Kitchen), said the following of the acquisition:
We are excited about this strategic combination, which will enable Annie’s to expand the reach and breadth of our high quality, great tasting organic and natural products, provide new opportunities for our employees, realize greater efficiencies in our operations, and maximize value for our stockholders.
To those customers greatly concerned that Annie’s product quality will tank due to the new affiliation with frankenfood titan General Mills, Foraker went on to say that:
Annie’s will remain dedicated to our mission: to cultivate a healthier and happier world by spreading goodness through nourishing foods, honest words and conduct that is considerate and forever kind to the planet. Authentic roots, great tasting products, high quality organic and natural ingredients, and sustainable business practices will continue to be the cornerstones of the Annie’s brand.
Quick to take action, many enraged consumers have labeled Annie’s a traitor company and vowed to boycott Annie’s products as a result of the news, primarily motivated by the fact that General Mills contributed $2.1 million to defeat California GMO labeling initiative Prop 37 in 2012 and I-522, a similar measure in Washington State.
In addition, General Mills is a member of the Grocery Manufacturers Association (GMA) which not only spent millions to defeat GMO labeling across the United States but arrogantly went so far as to sue the state of Vermont for its successful passage of a GMO labeling bill. Moreover, GMA supports and even helped draft a federal bill in Congress that will deny states the right to pass their own GMO labeling initiatives.
The Organic Consumers Association is in support of the Annie’s Homegrown boycott, calling for consumers to sign a petition to CEO Foraker that states the following:
Dear Mr. Foraker,
I am disappointed that Annie’s has sold out to a company like General Mills.
General Mills has so far spent $2.1 million to defeat GMO labeling initiatives, in California and Washington State. The company is a member of the Grocery Manufacturers which also has spent millions to defeat GMO labeling laws, has joined other groups to sue the state of Vermont to overturn the mandatory labeling law passed there earlier this year, and helped draft the bill, sponsored by Rep. Mike Pompeo (R-Kan), that would deny states the right to pass mandatory GMO labeling laws and make it legal to label foods containing GMOs as “natural.”
General Mills shareholders recently overwhelmingly rejected a shareholder’s resolution to remove GMO ingredients from the company’s products. While the company says it supports a uniform federal approach to GMO labeling, what it really supports is a “voluntary” scheme that would preempt states’ rights to pass labeling laws.
As a conscious consumer, I can no longer purchase Annie’s Homegrown products. If Annie’s wants to match its parent company’s donations against GMO labeling, by contributing an equal amount to support labeling initiatives in Oregon and Colorado, and if General Mills agrees to pull out of the GMA and publicly support state and federal mandatory GMO labeling laws, I may reconsider.
Until then, I will not be buying anything under the Annie’s brand.
This chart put together by Phil Howard, Associate Professor of Michigan State University, aptly illustrates the acquisition problem being experienced in the organic food industry and why consumers are concerned enough to be resorting to boycotts with the hope of altering the trend.
Why I Don’t Plan to Join the Annie’s Boycott
While I certainly sympathize with those in support of Annie’s boycott for the reasons listed above, I am not planning to join in at this time.
The primary reason I will continue to buy Annie’s brand on occasion as I have done for years is that this seems to be a classic case of throwing the baby out with the bathwater.
While it certainly would be easier in the long run for Annie’s to maintain its commitment to quality, organically produced food if it remained an independent company, it is not necessarily a done deal that quality will fall from an acquisition by General Mills.
The owners of Annie’s have a right to sell, after all. The company has been around for 25 years and maybe this is the right choice for the founding family. Who are we to judge their reasons?
This is a free country and threatening the company with an organized boycott when it has not yet deviated one whit from its original mission for something that is completely within its legal right and the founding family’s choice for the pursuit of happiness as they see fit seems very un-American to me.
It’s a “you’re guilty until proven innocent” mentality.
In addition, many Americans only have a choice to buy food at a Super WalMart or some other large supermarket chain. For these people, Annie’s represents a very good option and targeting a company with a boycott unintentionally harms these people too who have so few food choices as it is.
It is certainly very important for consumers to keep a close eye on Annie’s in the coming months and years to see if the quality and commitment to the nonGMO Project does indeed begin to suffer from becoming an arm of Big Food. If it does, you can be sure that I will be among the first to drop it like a hot potato and will not spend another dime on their products.
If, however, Annie’s continues to produce quality items, I see no reason to not continue buying their products as they fit the budget and eating philosophy.
There are some of Annie’s products I never buy, but there are some that I like well enough and buy occasionally especially when I am traveling and having difficulty finding decent food. I have no plans to alter my buying patterns in any way.
However, if the opportunity presents itself, I would certainly prefer to buy from another independent company if it has a similar product to Annie’s – most especially if this company is local! But, given that Annie’s isn’t a local company no matter if it remained independent or becomes part of Big Food, the choice to buy from them doesn’t really change due to the acquisition plans.
In my view, we should support quality food wherever it is produced, big corporation or a small independent company with local businesses always taking precedence if at all possible. A dollar spent on Annie’s products is not supporting General Mills, in my opinion. It is supporting quality food, and big corporation or not, General Mills will produce more of it if we demand it as consumers.
The bottom line is that where you spend your food dollar matters. If you spend it on quality foods that are nonGMO and produced in a sustainable manner, this is the type of food that will become more available – big company or small, GMO labeling or not.
What is your view? Are you going to boycott Annie’s because it will be acquired by General Mills? Why or why not?
2019 Update
Five years after the General Mills acquisition, I am happy to report that I am still buying Annie’s products. While not as good as what I make at home, they are still of high enough quality that I occasionally purchase some of Annie’s items for lunchboxes and snacks.
Sarah too often these companies are under duress to cave because they could be targeted with something bogus if they don’t. I do not know any such thing in this, but just like with certain legislators, do it or else sits dangling in their path…its wrong, but its there. Too often even bigger ag is also behind this company pushing for ever more control of what is healthy and safe. Never is it for the good of the consumer.
I am not able to buy Annie’s products where I live, if I could I wouldn’t touch them with a ten-foot pole now, but that is beside the point here. Another organic company has sold their soul to the devil.
I have no respect for this whatsoever, I am sure the family is not lacking in anyway without this sad sell-out to another multinational, that are only in business for the profit and nothing else.
So sad to see how money is more important than integrity !
I have never used any of Annie’s products; by choice. The bottom line folks is: ECONOMY RULES
THE WORLD. I love our USA because it is a democracy. I do not begrudge the folks who sold
Annie’s to GM because I cherish their right to do so. You have choices, too. You do not have to purchase this product ever. I, however, would not trust G Mills “to do the right thing”.. Do you have any clue to the number of dangerous ingredients added to processed foods that are not even noted on ingredients lists. clever marketing, slick wording, avoids having to do so.
I promote cooking and eating from scratch. Organic when possible. Slowing down, sitting down, and dining like civilized people. Can you find a celeb who can make this attractive to non-thinkers ?
Good point about it being available to more people. I can respect that. My problem is with GM’s anti GMO labeling stance. I’ve been boycotting GM for some time. I haven’t bought any of their products in years. Now I will just add Annie’s to the list with Grapenuts or whatever.
We don’t buy too many packaged foods but the convenience was nice on occasion.
I’m going to miss Annie’s. If GM changes their stance on labeling GMO’s then I would buy Annie’s products again, no problem.
How is this different than boycotting seed and nurseries companies who are Monsanto subsidiaries? Are you okay buying organic garden supplies from these companies?
Good point … but seeds are an infrequent purchase and easy to get online. Food isn’t. Also, these Monsanto seed subsidiaries sell GMO seeds as far as I’ve been able to tell. Annie’s is still committed to nonGMO.
It seems to me that “punishing the owners” of the company would entail GM, as Annie’s has sold out and no longer owns their brand. By boycotting this, we aren’t punishing those who started Annie’s. They made the decision to sell ownership and accept everything that came with it. Sure, there will still be Annie’s products, but they are all going to be produced and manufactured by GM now. GM (and other large corporations) have interest in purchasing organic companies because they know there is money to be made. Personally, I’ll probably only buy Annie’s in a pinch now (if at all) because I choose not to have even $1 of my money supporting a company that I fundamentally disagree with.
Annie’s let the fox in the hen house and we’re supposed to believe that’s okay? That’s very naive. Be prepared to start losing some chickens!
I can’t believe how you have allowed yourself to be deceived!!!!! What comes to mind is if it looks like a duck and acts like a duck….ITS A DUCK!!! A Co. that supports GMO’s and understands what GMO’s are…CANNOT support True Organic food and practices. The lawmakers are working on improvised wording from what I understand . Subscribe to natural news and follow,Mike who has a world of info that is helpful to anyone wishing to understand what is going on and many things for people interested in who want to remain truely organic. I just can’t believe America is in this position it’s really a crime that labeling our food genetically engineered if it is or comes from any part of genetically engineered seed is a battle. I was at the farmers market and asked a farmer if her squash was from gmo seed and she told me no. ….it was! 🙁 how sad ! I guess if no labeling laws are passed falsifying is permitted as well. It’s all becoming a huge deception practice. I’m totally disgusted with and yes I will NOT be supporting ANY Company that is the least bit connected to it! If I buy from a company that has one foot in gmo and one foot in organic it does not jive. Organic does not waver back and forth or even connect itself with gmo if it is true to being organic. I will place my money in the company’s that understand what they believe! And the nongmo.org project…very helpful.If it walks like a duck and acts like a duck..It’s A DUCK!!!
Annie’s is not walking like a duck yet. It may be owned by a duck, but it’s still a swan.
Sarah, its really hard to lose something you’ve trusted and supported for any amount of time but like someone already stated, its not Annies any more. I would guess that the profit was greatly impressive and like you said they shouldn’t be judged for their decision, and Im sure it was a difficult one. This is going to happen more and more if we do not stand firm and buy only from companies that solely support the organic industry. All the larger companys that “tapped in on making their own line of organics, while keeping their conventional line which probably is being produced with gmo ingredients as we speak,are receiving the moneys from both lines of food production.Not bad huh? Except that our truly committed to organic farming and products companies are losing their moneys that would otherwise be going to them and aide in inabling them to continue with all their efforts in keeping true to strickly organic. With the expenses in keeping their organic standards clean and dealing with this battle on the farm lands that they are induring as well,… its just too big Sarah take some time and read more into what Monsanto is doing through the gov. to our organic farmers and the manipulation and gross pay offs that ..if you search into it you would be amazed. we really need to support strickly organic companys only and bite the bullet if we cant find what we are shopping for and do without or pay a bit more for what we want where we can get it..Whole foods has an excellent selection in my area as well as many other quality organic food stores in other areas. I know they have been through some rough statements from being called liars and cheats, but if you research your food companys and buy the quality brands which these types of grocery stores sell many,you are still supporting only organic companys! its the only way to keep them strong for us during this hideous battle. Its wayyy bigger than we think!!. I hope I have touched some thinking here and will continue to do my best for organic living.
If we all start boycotting based on ideology… then soon this country will become seriously divided! And division leads to chaos and destruction.
GM will bring greater exposure to the organic market, because they have greater distribution channels.
Nothing is 100% perfect.
Most of my family could care less about the quality of the food they eat. So when an opportunity comes along… I just share my point of view. Little by little my message gets planted, then it it gets nurtured. Over time some of these mind seeds will take growth. But If I attack and act hostile towards their eating habits, they will just cringe and resist.
So GM can become… over time a major distribution channel.
Allot of people that are concerned about what we eat, probably will not be buying Annie’s any longer.
That said, I say YAY to Annie(There daughters name) for working a business up like they did and now want to retire.
Who in there right mind is going to give up, 840 Million Dollars!! ????
This is America folks, and I say let them have a Awesome retirement, and enjoy traveling and all.
Annie gave people many jobs, and now General Mills is going to sell Annie products.
They will have new buyers for there products, but not me..
General Mills will be hiring many more people to work there now, who need jobs desperately .
Who are we do Boycott? How Un-American can you be?
Remember this is America, and this is Not dishonest That Annie’s has sold there business..
If you do not want to buy it anymore, so be it, but shut your mouths.
And put your energy into labeling , Non-GMO,
We’re not boycotting the people who sold Annie’s, questioning their right to sell, or begrudging them their lucrative retirement (I really need to spend more investigatory time in my kitchen…maybe I have a million dollar product buried deep in my subconscious) but we are boycotting a product that’s been purchased by GM – a company that has spent significant money to stop GMO labeling, and supports the GMO food industry by purchasing massive quantities of the stuff. It’s by “shutting our mouths” that this problem – and many others – have progressed this far. Thank God that we don’t have to shut our mouths here in America! And by his grace, we’ll be heard and our food supply will return to being something we can purchase without scanning labels for frankenfood 🙂
My husband and I were discussing Annie’s brand last week, and I told him that I was glad to read that Annie’s is still non-GMO, but it will be interesting to see if they’re able to maintain it considering the behemoth that General Mills is and the fact that they are right on par with Monsanto. I do think it’s a huge sell-out on Annie’s part because at the end of the day, it is likely that General Mills will swallow them up whole and spit Annie’s mission out into the wind. I do like the products, so I’m hoping for a different outcome, but we’ll see. Btw, we live in the Twin Cities, and GM is a huge job producer to a few of our friends, so we try to take an optimistic and realistic approach as you have here.