Earth's Best
Founded: 1985 by Ron Koss and Arnie Koss
Sector: Natural and Organic Food
Business Status: Acquired in 1996 by H.J. Heinz Company
Location: Founded in Vermont, now headquartered in Boulder, Colorado.
Website: www.earthsbest.com
Founders story: Whilst working as clerks in natural food stores in the 1970''s, twins Ron and Arnie Koss discussed the development of a range of organic baby food, but did not pursue the idea at the time. Ron Koss went on to manage a Ronald McDonald house for seriously ill children, and Arnie Koss started a small company producing handmade brooms. It wasn''t until 1984 that they began to pursue their original idea. They raised start up capital through banks, private investors, the sale of Arnie Koss''s business, and a bank loan of $25,000 from a local business man, raising a total of £1.3million. This provided sufficient funds to start factory production[2].
Status 1991: "Earth''s Best is gaining tremendous momentum (...). For 1991, annual sales were estimated at $10 million. The market for organic baby food is estimated to be more than $100 million a year, and Earth''s Best is poised to become an industry leader, proving that the ecopreneur can succeed even when faced with well in-trenched and well-financed competition" (Bennett, 1991, p.31)[1]. By 1986 they had 20 employees working from their own Organic food processing facility where they produced three fruit purees and two vegetable purees. By 1995 over 50 varieties of baby food purees were being distributed across the country[3]. However the company suffered huge financial losses on several occasions, and whilst they repeatedly gained new finance and investment, they were eventually in a position where venture capitalists held the majority control, with Ron and Arnie Koss owning less than 1 per cent. When H. J. Heinz Company acquired Earth''s Best for approximately $30 million in 1996, Ron and Arnie received less than $300,000[4].
Status 2010: In 1999 H. J. Heinz Company and the Hain Food Group, Inc. announced an agreement to form a strategic alliance for the global production and marketing of natural and organic foods and soy-based beverages. This investment by Heinz gave them a 19.5% minority stake in Hain. The deal also involved Hain acquiring the trademark and name for Earth''s Best organic baby foods from Heinz[5]. Since 2000, the Earth''s Best range expanded with the development of Tots and Kidz food lines, Body Care products by Jason, iron fortified Organic Dairy and Soy Infant Formulas, and TenderCare™ Chlorine-Free Diapers and Wipes. In 2004 a partnership was established with Sesame Street to promote the "Healthy Habits for Life" Initiative, which led to a full line of nutritious Sesame Street branded breakfasts, snacks, meals and frozen foods[6]. The Earth''s Best baby food line has reportedly grown from a $14 million brand in 1999 to a $150 million brand in 2010[7]. Hain Food Group purchased Celestial Seasonings in 2000 for $385 million, changing the company name to Hain Celestial Group Inc[8]. Today Hain Celestial state on the Earth''s Best website that they continue to value the vision of Ron and Arnie Koss: ''Nurture children with the purest foods and grow those foods responsibly to promote a healthier earth''[9]. Ron and Arnie went on to share their experiences in their book ''The Earth''s Best Story: A Bittersweet Tale of Twin Brothers Who Sparked An Organic Revolution'', published in 2010[10].
Sources:
[1] Bennett, S. J. (1991) Ecopreneuring: The Complete Guide to Small Business Opportunities from the Environmental Revolution. New York: Wiley.
[2] Cropper, C. M. (1996) Bringing Up Baby With It''s Parents On the Sidelines. The New York Times, 5th May, Sunday Late Edition, Section 3, Column 2, p1.
[3] Earth''s Best (2010) Our History | EarthsBest [online].
[4] Cropper, C. M. (1996) Bringing Up Baby With It''s Parents On the Sidelines. The New York Times, 5th May, Sunday Late Edition, Section 3, Column 2, p1.
[5] PR Newswire (1999) Heinz to Acquire 19.5% of Hain Food Group; Global Strategic Alliance Part of Heinz and Hain Growth Strategies; Hain Acquires Earth''s Best Baby Food Brand from Heinz. PR Newswire, 27th September, Financial News Section.
[6] Earth''s Best (2010) Our History | EarthsBest [online].
[7] Rutt, S. (2010) Cramer''s ''Mad Money'' Recap: Don''t Let Worries Distract You from the Bull Market (Final) [online].
[8] Proctor, C. (2001) Celestial, Mail-Well were two big 2000 deals. The Denver Business Journal, 16th February, 52:28, p.19B.
[9] Earth''s Best (2010) Our History | EarthsBest [online]
[10] Koss, R. and Koss, A. (2010) The Earth''s Best Story: A Bittersweet Tale of Twin Brothers Who Sparked An Organic Revolution. Vermont: Chelsea Green Publishing.
Sector: Natural and Organic Food
Business Status: Acquired in 1996 by H.J. Heinz Company
Location: Founded in Vermont, now headquartered in Boulder, Colorado.
Website: www.earthsbest.com
Founders story: Whilst working as clerks in natural food stores in the 1970''s, twins Ron and Arnie Koss discussed the development of a range of organic baby food, but did not pursue the idea at the time. Ron Koss went on to manage a Ronald McDonald house for seriously ill children, and Arnie Koss started a small company producing handmade brooms. It wasn''t until 1984 that they began to pursue their original idea. They raised start up capital through banks, private investors, the sale of Arnie Koss''s business, and a bank loan of $25,000 from a local business man, raising a total of £1.3million. This provided sufficient funds to start factory production[2].
Status 1991: "Earth''s Best is gaining tremendous momentum (...). For 1991, annual sales were estimated at $10 million. The market for organic baby food is estimated to be more than $100 million a year, and Earth''s Best is poised to become an industry leader, proving that the ecopreneur can succeed even when faced with well in-trenched and well-financed competition" (Bennett, 1991, p.31)[1]. By 1986 they had 20 employees working from their own Organic food processing facility where they produced three fruit purees and two vegetable purees. By 1995 over 50 varieties of baby food purees were being distributed across the country[3]. However the company suffered huge financial losses on several occasions, and whilst they repeatedly gained new finance and investment, they were eventually in a position where venture capitalists held the majority control, with Ron and Arnie Koss owning less than 1 per cent. When H. J. Heinz Company acquired Earth''s Best for approximately $30 million in 1996, Ron and Arnie received less than $300,000[4].
Status 2010: In 1999 H. J. Heinz Company and the Hain Food Group, Inc. announced an agreement to form a strategic alliance for the global production and marketing of natural and organic foods and soy-based beverages. This investment by Heinz gave them a 19.5% minority stake in Hain. The deal also involved Hain acquiring the trademark and name for Earth''s Best organic baby foods from Heinz[5]. Since 2000, the Earth''s Best range expanded with the development of Tots and Kidz food lines, Body Care products by Jason, iron fortified Organic Dairy and Soy Infant Formulas, and TenderCare™ Chlorine-Free Diapers and Wipes. In 2004 a partnership was established with Sesame Street to promote the "Healthy Habits for Life" Initiative, which led to a full line of nutritious Sesame Street branded breakfasts, snacks, meals and frozen foods[6]. The Earth''s Best baby food line has reportedly grown from a $14 million brand in 1999 to a $150 million brand in 2010[7]. Hain Food Group purchased Celestial Seasonings in 2000 for $385 million, changing the company name to Hain Celestial Group Inc[8]. Today Hain Celestial state on the Earth''s Best website that they continue to value the vision of Ron and Arnie Koss: ''Nurture children with the purest foods and grow those foods responsibly to promote a healthier earth''[9]. Ron and Arnie went on to share their experiences in their book ''The Earth''s Best Story: A Bittersweet Tale of Twin Brothers Who Sparked An Organic Revolution'', published in 2010[10].
Sources:
[1] Bennett, S. J. (1991) Ecopreneuring: The Complete Guide to Small Business Opportunities from the Environmental Revolution. New York: Wiley.
[2] Cropper, C. M. (1996) Bringing Up Baby With It''s Parents On the Sidelines. The New York Times, 5th May, Sunday Late Edition, Section 3, Column 2, p1.
[3] Earth''s Best (2010) Our History | EarthsBest [online].
[4] Cropper, C. M. (1996) Bringing Up Baby With It''s Parents On the Sidelines. The New York Times, 5th May, Sunday Late Edition, Section 3, Column 2, p1.
[5] PR Newswire (1999) Heinz to Acquire 19.5% of Hain Food Group; Global Strategic Alliance Part of Heinz and Hain Growth Strategies; Hain Acquires Earth''s Best Baby Food Brand from Heinz. PR Newswire, 27th September, Financial News Section.
[6] Earth''s Best (2010) Our History | EarthsBest [online].
[7] Rutt, S. (2010) Cramer''s ''Mad Money'' Recap: Don''t Let Worries Distract You from the Bull Market (Final) [online].
[8] Proctor, C. (2001) Celestial, Mail-Well were two big 2000 deals. The Denver Business Journal, 16th February, 52:28, p.19B.
[9] Earth''s Best (2010) Our History | EarthsBest [online]
[10] Koss, R. and Koss, A. (2010) The Earth''s Best Story: A Bittersweet Tale of Twin Brothers Who Sparked An Organic Revolution. Vermont: Chelsea Green Publishing.