I love Annie’s macaroni and cheese, and apparently Wall Street does too.
Annie’s, makers of organic macaroni and cheese and other things like organic crackers shaped liked bunnies (the organic version of Pepperidge Farm goldfish) had it’s IPO on Wednesday. (Remember: that’s when a company starts selling it’s shares to the public on the stock exchange, please see earlier blog FACEBOOK’s New Friends). Annie’s stock went public at $19 per share, and closed Thursday at $37 per share.
Talk about a bunny hop!
My research (googling news stories, talking to my dad) says the big attraction here is Annie’s organic label. People love to buy organic. They feel good about feeding their family things that are good for them.
I eat Annie’s and love it (I like the purple box the best). But, I can tell you that my family is anything but organic. My mom buys Annie’s, makes it with “normal” milk and butter (butter makes it extra good), and then serves it to me with an Oscar Mayer hot dog. That is so not organic! In fact, Annie’s macaroni and cheese is the only thing in our house that is organic, until we open the box.
I am aware of the fascination with organic food. People want what they think is the best for the family. I saw it in the cafeteria last year when we had to bring our lunch to school. Kids would open a little carton of organic milk that their parents packed for them. Then, they would use it to quench their thirst after eating a big bag of cheetos. I don’t think their moms would approve of this.
Moms might not care so much if they read my book. Chapter 8, August 2010: The $40 Ostrich Egg, discusses organic food and it’s benefits. There aren’t any. You should read the entire chapter to get the whole story, but I will tell you, quoting from the book, that “the American Journal of Clinical Nutrition reviewed more than 160 papers published over the last fifty years and found that organic food offers no nutritional value over conventionally grown food.”. Uh oh.
Don’t misunderstand me, Annie’s macaroni and cheese is great. I just hope when it come to Wall Street, investors have done their research on these rabbits.
Peace Love Profits,