Arnott's

OVERALL
Owned	USA
Rating

Biscuit makers

Established in 1865 in Newcastle, NSW. Became a wholly-owned subsidiary of US food giant Campbell Soup Company in 1997. 99 percent of their products sold in Australia are manufactured in Australia. In 2019 Campbell Soup Co sold its international business arm to private equity firm KKR, which included Campbell Soups in Australia and Arnotts Biscuits.

Company Ownership

Arnott's Biscuits Ltd	AUS	website	email	facebook	twitter
Kohlberg Kravis Roberts & Co LP       owns 100% of Arnott's Biscuits Ltd	USA	website			twitter
Private equity firm One of the world's largest private equity firms. Listed on the New York Stock Exchange in 2010. Acquired Unilever's spreads business in 2017 for 6.83bn euros. Acquired Campbell Soup Co's international operations (including Arnott's) in 2019.

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Company Assessment

PRAISE	CRITICISM	INFORMATION
Arnott's Biscuits Ltd
Australian Packaging Covenant signatory Signatory to the Australian Packaging Covenant, a voluntary agreement to encourage waste minimisation. [Source 2020][More on Packaging]	Misleading labelling In 2015 the ACCC ordered this company to pay penalties totalling $51,000 for alleged misleading claims about the saturated fat content of its Shapes Light & Crispy product. Arnott's also provided a court enforceable undertaking to the ACCC. [Source 2015][More on Irresponsible Marketing]	Palm oil scorecard - WWF The WWF Palm Oil Buyers Scorecard 2019 assesses 173 companies on the commitments they have made, and the actions they have taken, to ensure that there is no destruction of nature including no deforestation along their supply chains; and support a responsible and sustainable palm oil industry beyond their own supply chain. This company failed to respond to WWF's requests for information. [Source 2019][More on Palm Oil] 2014 CHOICE Shonky Award Named and shamed in the 2014 CHOICE Shonky Awards. Arnott's peanut butter flavoured Tim Tam earned an award, because, according to Choice, it contained no peanuts (with paprika being a surprising inclusion) and because the pack contained fewer biscuits and weighed 35g less, despite maintaining the same price and package size. [Source 2014][More on Irresponsible Marketing] 2015 CHOICE Shonky Award Named and shamed in the 2015 CHOICE Shonky Awards for the "school canteen - meets amber guidelines" claim emblazoned on packs of Arnott's Tiny Teddies. Arnott's did the approving all on its own, despite the fact that Tiny Teddies wouldn't pass the National Healthy School Canteen guidelines. [Source 2015][More on Irresponsible Marketing] Packaging Award 2014 This company won an award in 2014 from the Australian Packaging Covenant, for demonstrating their commitment to environmental sustainability by performing 'above and beyond' in their efforts to minimise waste. This company achieved the highest overall score in their category, large food company. [Source 2014][More on Packaging] GM-Free brands Brands owned by this company were rated 'green' in Greenpeace's 2011 Truefood Guide, signifying a clear policy on excluding GM-derived ingredients, including oils derived from GM crops, and animal products from animals fed on GM crops. [Source 2011][More on Genetic Engineering] RCMI signatory This company is a signatory to the Responsible Children's Marketing Initiative (RCMI), which is managed by the Australian Food & Grocery Council and covers products found in retail outlets. Companies that have signed up to the initiative commit to: only advertising healthier choices to children and encouraging a healthy lifestyle through good diet and physical activity; not paying for or seeking product placement television programs, editorial content or interactive games aimed at children, unless the product is a healthier choice; not advertising and marketing to children in Australian schools unless they are asked to by those schools. [Source 2019][More on Irresponsible Marketing] Cocoa sourcing commitments Arnott's announced on 29 Oct 2010 that it will source ethical cocoa that has not been made with the use of child labour for all of its chocolate-based products, including the iconic Tim Tam biscuit, after being the target of a public campaign by World Vision earlier in the year. [Source 2010][More on Workers Rights] CSR claims This company has Corporate Social Responsibility claims on its website in the areas of limiting emissions to the water, air and land, and the efficient use of resources. Also available are policy statements regarding sustainable palm oil and sustainable cocoa. [Source 2015][More on Sustainability Reporting] Arnott's Foundation The Arnott's Foundation is the charitable arm of Arnott's Biscuits Ltd. Supported projects include Camp Quality, Foodbank, Driver Reviver and Fairy Sparkle. [Source 2015][More on Finance]
Kohlberg Kravis Roberts & Co LP
100% on Corporate Equality Index This company is listed as having best practice on a report card on lesbian, gay, bisexual and transgender equality in corporate America. [Source 2019][More on Workers Rights]	10.0% in Newsweek Green Rankings 2016 This company received a score of 10/100 in the Newsweek Green Rankings 2016, which ranks the world's largest publicly traded companies on eight indicators covering energy, greenhouse gases, water, waste, fines and penalties, linking executive pay to sustainability targets, board-level committee oversight of environmental issues and third-party audits. Ranking methodology by Corporate Knights and HIP Investor. [Source 2016][More on Sustainability Reporting] Collusion lawsuit In 2014, this company, together with other private equity firms Blackstone and TPG, agreed to pay US$325m to settle a lawsuit that accused seven private equity groups of conspiring to fix the prices of some of the world's biggest leveraged buyouts. [Source 2014][More on Governance] Breach of fiduciary duty On 29 June 2015 the U.S. Securities & Exchange Commission charged this company with misallocating more than US$17m in 'broken deal' expenses to its flagship private equity funds in breach of its fiduciary duty. KKR agreed to pay nearly US$30m to settle the charges, including a penalty of US$10m. [Source 2015][More on Finance]	Sweatshops in China This investigative report by China Labour Watch reveals how KKR turns a blind eye to the human impact of the massive production outsourced by Dollar General and other companies in its portfolio. CLW Executive Director Li Qiang states that DG has 'the worst labor performance in China of all major US retailers'. [Listed under Information due to age of report] [Source 2009][More on Workers Rights] ESG claims This company has environmental, social and governance (ESG) claims on its website. [Source 2016][More on Sustainability Reporting] Modern Slavery statement California, the UK and Australia have all enacted legislation requiring companies operating within their borders to disclose their efforts to eradicate modern slavery from their operations and supply chains. Follow the link to see this company's disclosure statement. [Source 2016][More on Human Rights]

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Company Details

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Products / Brands

Arnotts Biscuits/Crackers Arnotts Cakes Arnotts UTZ certified  Chocolate Shapes Biscuits/Crackers Tim Tams Biscuits/Crackers Wagon Wheels Biscuits/Crackers

Related News

Arnott's pays $51,000 for alleged misleading claims about Shapes
23rd Nov 2015 — Arnott's Biscuits Ltd (Arnott's) has paid penalties totalling $51,000 following the issue of five infringement notices by the Australian Competition and Consumer Commission relating to representations made by Arnott's about its Shapes Light & Crispy product. Arnott's also provided a court enforceable undertaking to the ACCC.

Arnott's represented on the packs of four varieties of Shapes Light & Crispy and a multipack between October 2014 and July 2015 that Shapes Light & Crispy contained '75% less saturated fat' than Arnott's' original Shapes biscuits, when in fact it contained approximately 60 per cent less saturated fat than original Shapes.

In making the '75% less saturated fat' representation, Arnott's was actually comparing its Shapes Light & Crispy product not to original Shapes but to potato chips cooked in 100% palm oil. This was included in a fine print disclaimer at the bottom of the packs. However, even if potato chips had been an appropriate comparison for the saturated fat content of Shapes Light & Crispy, the ACCC notes that since only around 20 per cent of potato chips sold in Australia are cooked in palm oil, the representation may still have been misleading.

'Consumers should be able to trust the claims that businesses make to sell their products. Small print disclaimers cannot correct false or misleading representations which are made in a prominent way in advertising or on packaging,' ACCC Chairman Rod Sims said.

'Businesses must ensure that any comparison claims they make are accurate and based on meaningful comparisons for consumers. This is particularly the case regarding claims that involve healthier eating.'

'Truth in advertising, particularly where misleading claims are made by large businesses, is a priority enforcement area for the ACCC,' Mr Sims said.  [source]

Choice Shonky Awards for 2015
7th Oct 2015 — THE nation`s leading consumer group Choice has asked the ACCC to investigate Kleenex, Arnott`s, Ikea and the maker of laundry balls which supposedly use infra-red rays to clean but are less effective than water.

The four referred to the Australian Competition and Consumer Commission were today named among the biggest losers from more than 400 nominations in the tenth annual Choice `Shonky` product awards.

Kleenex was bestowed the `Gold Shonky` for its flushable cleanings cloths for kids, which were promoted as disintegrating like toilet paper ... but don`t.

`It`s very concerning, that one in particular,` ACCC deputy chairwoman and head of product safety Delia Rickard told News Corp Australia after watching a video of a Choice test in which the wipes failed to disintegrate after 20 hours of simulated flushing.

The maker of Kleenex, Kimberly-Clark Australia, said its products met global guidelines for `flushability`. However, the company recommended no more than two wipes be flushed at any one time.

`We are aware of some localised concerns from some regional water authorities and we, along with other makers of wipes products, have been proactively engaging with the Water Services Association of Australia,` a Kimberly-Clark spokeswoman said.

`It is clear business still needs to sharpen up its act,` said Choice CEO Alan Kirkland. `We hope the Shonkys encourage consumers to look critically at the goods and services they use, question poor service, hidden costs and the fine print beneath claims that seem too good to be true.`  [source]

Arnott's ensure Tim Tams are free from child labour
29th Oct 2010 — Arnott's announced that it will source ethical cocoa that has not been made with the use of child labour for all of its chocolate-based products, including the iconic Tim Tam biscuit, after being the target of a public campaign by World Vision earlier this year (2010).  [source]

The Real McCoy Snackfood Co buys Arnotts snack foods
28th Apr 2008 — (FOREIGN >> AUST) A consortium of investors lead by The Real McCoy Snackfood Co purchased the snack foods business of Campbells/Arnotts in May 2008. The combined businesses was renamed 'Snack Brands Australia'. The deal brings several brands back to Australian ownership, including Kettle Chips, Thins, Cheezels, CCs, French Fries & Samboy.   [source]