The Founding Story Is Real
Annie Withey co-founded the company in 1989 in Hampton, Connecticut, with Andrew Martin, who had previously co-founded Smartfood popcorn. The founding premise was concrete: offer an organic macaroni and cheese that didn't use the artificial dyes, processed cheese product, and synthetic additives that defined Kraft — the dominant product in the category.
Early customers ordered it by the case. Withey's personal phone number was printed on every box. She answered the calls. This wasn't a marketing stunt — at the time, there was no marketing budget. The phone number was how a small-producer connected with her actual customers. It became the defining artifact of the brand's identity: a real person, a real mission, accountability on the packaging itself.
By the late 1990s, Withey had stepped back from daily operations. In 1999, investor John Foraker's company invested $2 million, acquiring Withey and Martin's shares and making Annie's a private company. Withey became "inspirational president" — the face remained, the operational control did not.
1989
Annie Withey — Founder
Hampton, Connecticut. Organic mac & cheese as alternative to Kraft. Home phone number on packaging. Sells cases to individual customers.
1999
Founder stake sold to Homegrown Natural Foods / John Foraker
$2M investment. Withey and Martin's shares bought out. Withey becomes "Inspirational President" — brand face, no operational role. Company goes private.
2002
Solera Capital
$23M majority investment. Annie's scales distribution to Costco, Kroger, Safeway. Still operated as independent organic brand. Withey's name and aesthetic maintained.
March 2012
IPO — Nasdaq: BNNY
~$630M initial valuation. Trades publicly for less than three years. By this point Annie Withey had completely cut ties with the company.
September 2014
General Mills (NYSE: GIS)
Acquired for $820M — 37% premium to market price. GIS makes Cocoa Puffs, Lucky Charms, Trix, Cheerios, Betty Crocker. Packaging, bunny mascot, and "Homegrown" identity maintained intact. Ownership disclosed only in fine-print legal text.
August 2017
President John Foraker resigned
Announced departure on LinkedIn. The last senior executive with direct ties to Annie's pre-acquisition era. Three years after acquisition — once integration was complete. No public explanation for timing.
What the packaging still says
As of February 2026, Annie's packaging features: the "Homegrown" wordmark, the hand-drawn Bernie the bunny, "Since 1989," the Rabbit of Approval seal, "Certified Organic" from third-party auditors, and warm earthy colors. None of this discloses General Mills ownership. The legal entity name "General Mills" appears only in the fine-print ingredient label text, not in any consumer-facing brand communication. A parent buying Annie's over Kraft because they want to support a values-driven organic company is, after September 2014, routing their purchase to the same $34 billion conglomerate.
The Recipe Change: Before & After
In September 2024, General Mills reformulated Annie's Shells & White Cheddar, Classic Cheddar, and Shells & Aged Cheddar lines. The relaunch packaging declared the recipe "Now Cheesier." The press release called it a "delightful upgrade."
Consumer advocacy site Mouse Print compared the old and new ingredient lists side by side. What it found: the fourth and fifth ingredients in the old recipe — butter and nonfat milk — had been removed. They were replaced with corn starch, a thickener that contains no protein and no meaningful dairy nutrition. This is what General Mills did not highlight in its press release.
Shells & Aged Cheddar
Cheese powder comparison · Pre vs. Post September 2024
Before — Pre-September 2024
Original recipe
1Organic Pasta (organic wheat flour)
2Organic Dried Cheddar Cheese (organic cultured pasteurized milk, salt, non-animal enzymes)
3Organic Whey
4Salt
5Organic Butter (organic pasteurized cream, salt)removed
6Organic Nonfat Milkremoved
7Sodium Phosphate
8Organic Annatto Extract (for color)
9Silicon Dioxide (for anticaking)
After — September 2024 "Now Cheesier"
Current recipe
1Organic Pasta (organic wheat flour)
2Organic Dried Cheddar Cheese (organic cultured pasteurized milk, salt, non-animal enzymes)
3Organic Whey
4Salt
5Organic Corn Starchadded
6Sodium Phosphate
7Organic Annatto Extract (for color)
8Silicon Dioxide (for anticaking)
—
Nutrition impact (per serving)
Protein9g ↓ from 11g (−22%)
Calcium90mg ↓ from 110mg (−18%)
Total fatDecreased (butter removed)
SaltAmount increased
What General Mills claimed
Claim in press release"Now Cheesier"
Mentioned butter removalNot disclosed
Mentioned protein dropNot disclosed
Consumer reviewsPredominantly 1-star
Source: Mouse Print (mouseprint.org), April 2025, comparing old and new Annie's Shells & Aged Cheddar ingredient statements.
Nutrition data per Retail Brew analysis (May 2025), citing Renee Leber, Institute of Food Technologists.
General Mills did not respond to direct questions about why protein decreased if cheese content increased.
Food science consultant Renee Leber, when asked by Retail Brew to review both recipes, noted that removing butter and nonfat milk while adding corn starch — while increasing cheese by a smaller percentage — "might have gone to a less expensive formulation." General Mills addressed none of the specific questions posed to them. Their written response: "We're always looking for ways to ensure our products deliver on the taste and quality our consumers want."
Sales data from Circana shows Annie's revenue was up 2% in the 52 weeks ending April 2025 — ahead of the overall mac and cheese category. The recipe change has not, so far, hurt revenues. For comparison: after a similar skimpflation backlash against Smart Balance (Conagra's butter spread, water ratio doubled in 2022), Conagra reverted to the original recipe within months. General Mills has made no such commitment for Annie's.
The Tell
If the recipe were genuinely improved, General Mills would have disclosed the specific change. Instead, the press release emphasized "more cheese" and said nothing about removing butter or nonfat milk. The omission of the specific change is itself the evidence. Brands that upgrade recipes describe what improved. Brands that degrade recipes use marketing language that technically doesn't lie. "Now Cheesier" is true if cheese proportion increased — it says nothing about the protein, the dairy fats, or the ingredients that were removed.
The Phthalates Problem
In 2017, a report commissioned by health advocacy groups tested 30 cheese products — 10 of them mac & cheese powder varieties. Twenty-nine of the 30 tested positive for phthalates. Phthalates are chemicals used to make plastics flexible; they enter food supply chains through processing equipment, conveyor belts, and packaging materials. The cheese powders tested — including organic products — had phthalate levels four times higher than natural cheeses.
Annie's confirmed on its FAQ page that its products contained phthalates. The company was transparent enough to put this on its website. What it did not do was put it on the packaging — the one place every consumer looks before purchase.
2017 advocacy study
29 of 30
Mac & cheese powder products tested positive for phthalates — including organic varieties. 4× higher than natural cheese.
Lawsuit filed
April 2021
Class action against General Mills in EDNY. 20+ Annie's products named. Claims: "Made with Goodness" while containing phthalates not disclosed on packaging.
General Mills disclosed phthalates
FAQ only
Company acknowledged phthalate presence on its website FAQ section. No disclosure on product packaging — where purchase decisions are made.
Current status
Active
Case limited in 2025 to omission-of-facts claims rather than affirmative misrepresentation. No settlement announced. No recall. Products still on shelf.
The lawsuit allegation is precise: General Mills knew its products contained phthalates, disclosed this in a FAQ section on its website, and did not disclose it on the packaging where consumers actually make purchase decisions. The plaintiffs allege this constitutes deceptive omission under New York consumer protection law and the Magnuson-Moss Warranty Act.
Annie's issued a pledge in 2021 to work with suppliers to eliminate phthalates from "packaging materials and food processing equipment." This is a supply chain commitment — not a timeline, not a verification protocol, not a third-party audit. No date for completion was given. No follow-up testing results have been published. As of February 2026, the FAQ page language from 2021 remains on Annie's website largely unchanged.
The Disclosure Pattern
Annie's chose to put phthalate information on a website FAQ rather than on packaging. This is the same structural problem as the General Mills ownership disclosure: the information exists, it's technically findable, and it's positioned exactly where consumers will not encounter it during a purchase decision. The parent and the child brand use the same playbook. This is not coincidence — it is General Mills' standard operating procedure for uncomfortable disclosures.
The Acquisition in Numbers
Acquisition price
$820M
September 2014. 37% premium to prior market close. Funded by General Mills existing debt facilities.
General Mills market cap
$34B
NYSE: GIS. Also owns Cheerios, Lucky Charms, Cocoa Puffs, Haagen-Dazs, Yoplait, Pillsbury, Betty Crocker.
Annie's annual revenue
~$250M
Estimated (GIS does not break out Annie's individually). Represents less than 1% of General Mills total revenue.
Packaging change post-acq.
None
Visual identity, bunny mascot, "Homegrown" wordmark, "Since 1989" — all unchanged since acquisition. GM ownership in fine-print only.
CEO departure
Aug 2017
John Foraker, President since 1999, resigned three years post-acquisition once integration was complete. Announced via LinkedIn.
Revenue post-reformulation
+2%
52 weeks ending April 2025. Recipe change has not hurt sales yet. Consumer recognition of degradation lags product change by months to years.
What Annie's Still Gets Right
Clarity about the acquisition and the recipe change does not require pretending the product is equivalent to Kraft. Annie's organic mac & cheese is still meaningfully different from Kraft Original in ways that matter to the consumers buying it.
The pasta uses organic wheat flour. The cheese powder uses real cheddar without synthetic dyes. There is no Yellow 5 or Yellow 6 — the artificial colorants that give Kraft its characteristic bright orange. The sodium content, while not low, is comparable to Kraft's. The organic certification is legitimate, third-party audited, and renewed annually. No FDA enforcement actions for false labeling have been taken against Annie's products.
The green score on Scientific Backing reflects that Annie's makes no fabricated health claims and no clinical endorsements. It is honest about what it is: an organic convenience food. The green score on Revenue Model reflects that this is a straightforward retail purchase — no subscription, no DTC lock-in, no predatory pricing structure.
What Actually Holds Up
If you're buying Annie's instead of Kraft because you want organic pasta and real cheese without synthetic dyes — you're getting what you paid for at the product level. The green score on ingredient quality relative to conventional alternatives remains fair. The red scores are about ownership, disclosure, and trajectory — not about the product being outright fraudulent. Know what you're buying, and from whom.
If You Want the Original Mission
Banza Mac & Cheese uses chickpea pasta, delivers higher protein than Annie's current recipe, and was operationally independent as of 2024 (acquired by a consumer fund, maintained independent operations). If protein content matters to you — which it did when you bought Annie's original recipe — Banza is now the stronger nutritional option in the boxed mac category.
Homemade remains the most transparent option: organic pasta plus a real aged cheddar, milk, and butter produces five recognizable ingredients, no powder, and roughly the same cost per serving as a box of Annie's. It's not instant, but it's the version where you control exactly what went in — and nothing was quietly removed.
If you're still buying Annie's: the organic certification is real and the product is genuinely cleaner than Kraft. The information above exists so you can make that choice knowing who you're buying it from and what changed in the formula in September 2024.
Sources & Documentation
Wikipedia — Annie's HomegrownFounding history, IPO, General Mills acquisition, September 2024 recipe change documentation, revenue data. Cross-referenced with primary sources.
General Mills Press Release, September 2014Acquisition of Annie's Homegrown announced at $46/share (~$820M). 37% premium to prior close. Available via SEC EDGAR and GIS investor relations.
Mouse Print (mouseprint.org), April 2025"Here We Skimp Again — Annie's Shells & Cheddar." Side-by-side ingredient comparison of pre- and post-September 2024 recipes. Documented butter and nonfat milk removal, corn starch addition.
Retail Brew, May 2025"Annie's new mac and cheese recipe has longtime fans fuming." Renee Leber (IFT) quote on cost-cutting motivation. Circana revenue data for 52 weeks ending April 2025. GIS non-response to direct questions.
ClassAction.org / EDNY filing, April 2021Class action against General Mills for phthalates in Annie's products. Alleges "Made with Goodness" marketing while phthalates present and not disclosed on packaging. Plaintiff: Shelby Franklin.
Food Packaging Forum, February 2021Annie's FAQ statement confirming phthalate presence below EFSA threshold. Company pledge to eliminate phthalates from processing equipment and packaging materials.
PCC Community Markets Sound Consumer, July 2021"Annie's takes steps to address phthalates." 2017 advocacy report finding phthalates in 29 of 30 tested cheese products. Context on industry-wide nature of contamination.
Annie's product pages (annies.com), February 2026Current ingredient lists for Classic Cheddar, Organic Shells & Real Aged Cheddar, Shells & White Cheddar. Post-September 2024 formulations confirmed directly from brand website.
SEC EDGAR — Annie's S-1 IPO Prospectus, 2012Filed March 2012. Full founding history, ownership structure, mission statement, financial data at time of public offering.
Circana retail panel data, via Retail Brew 202552-week revenue comparisons for Annie's, Kraft Heinz, and private label mac & cheese. Category-level growth rates post-reformulation.