One of the most important things you to understand about Annie’s is that we are a mission driven company. We operate by important core values around quality, integrity, social responsibility, and environmental sustainability. Understanding that is key to understanding our brand, our business opportunity and most importantly our unique company culture.The values you see here on this page and that I just mentioned are internally woven into the brand and the value proposition that consumers vote with at shelf when they connect with our brand. And we think that’s very important to current as well as next generation consumers as they relate to us and support where we headed. Mission and culture had been a very important competitive advantage for Annie’s in the past and we expect they will be the future as well. On the strength of strong great products and strong execution and our mission, we’ve been able to develop into one of the leading natural organic brands in the United States. We’ve grown from natural channel roots into over 25,000 points of distribution. As you can see on the left hand side of the page, we’ve approximately double sales 17% CAGR over the last five years or so. And we’ve significantly increased our operating income which was $20 million on an LTM basis and importantly over $10 million in free cash flow during that time frame due to our efficient business model that you will hear about in a moment. We are well positioned for future continued growth and strong cash flow generation in the core business. Our recipe for success with the brand is really simple. We identify big conventional food categories that are important and highly relevant to mom, kids, and family. And then we develop a simple delicious natural organic alternative to appeal to that consumer and make it widely available where consumers want to shop.
This formula works. Right now, we have the number one share across all channels for natural and organic products in macaroni and cheese, snack crackers, graham crackers, and fruit snacks. And we started as Mac and cheese company as many people know but have build a strong position in snacks which is about the same size and Mac and cheese and both continues to do really well. And we expect to add other categories to this number one list as we grow in the future.Quickly, there are four compelling reasons to invest in Annie’s. First, the industry, this is an attractive industry with long standing consumer trends towards health that winded our back. Second, we are an authentic brand; we are proven and well positioned where consumers are going. Third, we delivered strong financial performance in an efficient business model that generates a lot of cash. And fourth, we are promising growth for the future. We understand the growth levels in this business and we are going to continue to hold them. A moment on the brand. Annie’s is an authentic trusted brand and there were four threads to the Annie’s brand fabric. The first is Real and Authentic Roots. There is really Annie Withey, the sister on her farm in Connecticut. She has been involved with the business since the beginning. She still plays an important role in the business, writing a lot of consumer communication on our products. Bernie is our Rabbit of Approval rather than our seal of approval. He was a natural rabbit that was Bernie’s when the company started. I mean, he is the common iconic vision for the brand and connects with consumers in a very important way. We made premium great tasting products. We are among the first natural organic products to recognize that taste is the one of the most important things. So we formally to taste great. We simple natural and organic ingredient from people and places we trust and from companies and supply partners that share our values around social responsibility and environmental sustainability. Read the rest of this transcript for free on seekingalpha.com