Lyla Lindsey
Arnott's Biscuits is an Australian producer of biscuits and snack foods, founded in 1865 by Scottish immigrant William Arnott. The company has had a long history in Australia, with its products becoming iconic and quintessentially Australian. Despite its Australian origins, Arnott's has not always been Australian-owned, and its ownership has changed hands several times over the years. The company has also faced challenges from American competitors trying to enter the Australian market and has had to adapt and diversify to maintain its dominance in the biscuit industry.
| Characteristics | Values |
|---|---|
| Year founded | 1865 |
| Founder | William Arnott |
| Founder's origin | Scotland |
| Current owner | KKR |
| Previous owner | Campbell Soup Company |
| Year acquired by current owner | 2019 |
| Acquisition cost | $US2.2 billion |
| Primary market | Australia |
| Percentage of products manufactured in Australia | 99% |
| Ethical commitments | Signatory to the Responsible Children's Marketing Initiative, commitment to source cage-free eggs, ethical cocoa, and sustainable palm oil |
| Awards | Named and shamed in the 2014 and 2015 CHOICE Shonky Awards |
| Number of manufacturing plants in Australia | 3 |
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What You'll Learn
- Arnott's Biscuits was founded in Australia in 1865 by Scottish immigrant William Arnott
- In 1997, Arnott's became a wholly-owned subsidiary of the US-based Campbell Soup Company
- The company was sold to KKR in 2019 for $US2.2 billion
- Arnott's is the largest producer of biscuits in Australia
- The company has faced controversy over the years, including an extortion bid in 1997 and a dispute with Woolworths Supermarkets in 2019
Arnott's Biscuits was founded in Australia in 1865 by Scottish immigrant William Arnott
In 1875, Arnott set up his first factory in Newcastle to cater to a larger market. The factory, known as William Arnott's Steam Biscuit Factory, employed a workforce of 50 people and produced around 1.5 tons of biscuits per day. By the early 1880s, Arnott's biscuits had gained popularity, and the company expanded to Sydney, where it became one of the city's biggest biscuit suppliers.
William Arnott passed away in 1901, leaving the company to his five sons, who continued the brand's success. The company remained under the control of William Arnott's descendants until 1975.
Over the years, Arnott's Biscuits became a well-known producer of quintessentially Australian biscuits, with iconic products such as the Tim Tam biscuit, Adora Cream Wafer, and Iced VoVos. The company faced competition from American companies in the 1950s but successfully countered these efforts by launching its own versions of popular American treats and consolidating regional Australian baked goods companies.
In 1997, Arnott's Biscuits became a wholly-owned subsidiary of the Campbell Soup Company, sparking controversy in Australia as there was a desire for the iconic brand to remain in Australian hands. Despite the change in ownership, biscuit manufacturing remained in Australia, and Arnott's continued to expand its facilities in Australian cities. In 2019, Campbell Soup Company sold Arnott's to KKR, a private equity firm.
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In 1997, Arnott's became a wholly-owned subsidiary of the US-based Campbell Soup Company
Arnott's Biscuits Pty Ltd, an Australian producer of biscuits and snack foods, was founded in 1865 by Scottish immigrant William Arnott. In 1997, Arnott's Biscuits became a wholly-owned subsidiary of the US-based Campbell Soup Company.
The Australian company was acquired by the US food giant after it had been a shareholder since the 1980s. This caused controversy in Australia as people wanted the iconic brand to remain Australian-owned. There were also fears that Campbell's would Americanise the products. However, biscuit manufacturing remained in Australia, and Arnott's expanded its facilities in Sydney, Adelaide, and Brisbane.
The acquisition by Campbell's was not the first time that Arnott's had been involved in a takeover bid. In the 1950s, the company was one of the leading regional Australian baked goods companies targeted by US food powerhouse Nabisco. In response, Arnott's consolidated several regional Australian baked goods companies, forming the Australian Biscuit Company. In the 1960s, Arnott's was again involved in a bidding war with Nabisco, this time over popular Melbourne-based biscuit company Swallow & Ariel. Arnott's was successful in acquiring a 51% stake in the company, maintaining its dominance in the Australian market.
Despite the acquisition by Campbell's, Arnott's continued to be a major Australian icon, known for producing quintessentially Australian biscuits. In 2010, Arnott's committed to sourcing ethical cocoa for its chocolate-based products, including the iconic Tim Tam biscuit. The company has also made corporate social responsibility commitments in areas such as sustainable palm oil and cage-free eggs.
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The company was sold to KKR in 2019 for $US2.2 billion
Arnott's Biscuits Pty Ltd, founded in 1865 by Scottish immigrant William Arnott, was an Australian-owned company until 1997. That year, the Campbell Soup Company of North America, a shareholder of Arnott's since the 1980s, acquired Arnott's in full. This caused some controversy in Australia, as there was a desire for the iconic brand to remain in Australian hands. Despite the sale, the manufacturing of Arnott's biscuits remained in Australia, and the company continued to produce quintessentially Australian biscuits, such as Iced VoVos, Jaffa Cakes, and Tim Tams.
In 2019, after over two decades of ownership, the Campbell Soup Company agreed to sell Arnott's to the private equity firm KKR for $US2.2 billion. This sale included Campbell Soups in Australia and Arnott's Biscuits. KKR is one of the world's largest private equity firms, having been listed on the New York Stock Exchange in 2010. The acquisition of Arnott's added to KKR's existing portfolio of food and beverage companies, including the previous acquisition of Unilever's spreads business in 2017 for 6.83 billion euros.
The sale of Arnott's to KKR marked a significant change for the iconic Australian brand, and it is unclear what the long-term implications of this sale will be. However, just weeks after the sale, Arnott's found itself in a public dispute with Woolworths Supermarkets, which reportedly wanted to charge higher prices for marketing displays. Despite this early challenge, KKR-backed Arnott's continued to expand, acquiring several other food companies in the following years, including Kiwi biscuit maker 180 Degrees and Freedom Foods' cereals and snacks division.
While the ownership of Arnott's has changed hands several times over the years, the company remains an iconic Australian brand with a long history dating back to 1865. The company has faced various challenges and controversies over the years, including a notable extortion bid in 1997 and a "biscuit war" with Nabisco in the 1960s. Despite these challenges, Arnott's has continued to grow and diversify, solidifying its place as one of Australia's largest and most beloved biscuit producers.
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Arnott's is the largest producer of biscuits in Australia
Arnott's Group is an Australian producer of biscuits and snack foods. Founded in 1865 by Scottish immigrant William Arnott, they are the largest producer of biscuits in Australia.
Arnott first opened a bakery in Morpeth, New South Wales, in 1847. In 1865, he moved to a bakery on Hunter Street, Newcastle, providing bread, pies, and biscuits for the townspeople and ships docking at the local port. In 1875, he set up his first factory in Newcastle, which soon employed a workforce of 50 people and produced around 1.5 tons of biscuits per day.
William Arnott died in 1901, and the company was taken over by his five sons, who continued to grow the brand. By the early 1880s, Arnott's had become one of the biggest biscuit suppliers in Sydney, and in 1882, they launched their popular Milk Arrowroot biscuit. The company was under family control until 1975, with descendants of William Arnott, including Halse Rogers Arnott and Geoffrey H. Arnott, acting as Chairman.
In 1949, Arnott's merged with Morrows Pty Ltd, a Brisbane biscuit manufacturer, forming William Arnott's Morrow Pty Ltd. In the 1950s, when the Australian biscuit industry faced a crisis due to the popularity of American products, Arnott's consolidated several prominent regional Australian baked goods companies, creating the Australian Biscuit Company, later renamed Arnott's Biscuits Pty Ltd.
In 1997, Arnott's became a wholly-owned subsidiary of the Campbell Soup Company of North America, a shareholder of Arnott's since the 1980s. This caused controversy in Australia, as there was a desire for the iconic brand to remain in Australian hands. However, biscuit manufacturing remained in Australia, and Arnott's continued to expand its facilities in Sydney, Adelaide, and Brisbane. In 2019, Campbell Soup Company sold Arnott's to KKR for US$2.2 billion.
Arnott's produces several quintessentially Australian biscuits, including Iced VoVos, a wheat flour biscuit with a raspberry jam and fondant topping sprinkled with coconut, and Tim Tams, which are now available with ethically sourced cocoa.
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The company has faced controversy over the years, including an extortion bid in 1997 and a dispute with Woolworths Supermarkets in 2019
Arnott's Biscuits, the Australian producer of biscuits and snack foods, has faced a few controversies over the years. One notable incident occurred in 1997 when the company was subjected to an extortion bid by a 72-year-old Queenslander named Joy Ellen Thomas. Thomas allegedly threatened to poison packets of Arnott's Monte Carlo biscuits in South Australia and Victoria, prompting a massive recall and publicity campaign by the company. The recall cost Arnott's A$22 million, but they were praised for their transparency in handling the situation. Despite the threat and the recall, no charges were pressed against Thomas due to conflicting evidence.
Another controversy involving Arnott's arose in 2019, shortly after the company was sold to KKR for $US2.2 billion. A dispute emerged between Arnott's and Woolworths Supermarkets, reportedly over pricing and promotions. Woolworths, a supermarket giant, wanted to charge higher prices for marketing displays of Arnott's products, including popular items such as Tim Tams and Tiny Teddies. This stand-off between the two companies attracted attention and highlighted the negotiation dynamics between suppliers and retailers.
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Frequently asked questions
No, Arnott's Biscuits is not Australian-owned. It is owned by KKR, a private equity firm.
Yes, Arnott's Biscuits was founded in 1865 by Scottish immigrant William Arnott and remained under his family's control until 1975. In 1997, it was acquired by the Campbell Soup Company and was sold to KKR in 2019.
Arnott's Biscuits produces several quintessentially Australian biscuits, including Iced VoVos, Jaffa Cakes, and Tim Tams. They are the largest producer of biscuits in Australia.
