Annie's Naturally Bakery

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Location:

Sylva, NC

County:

Jackson

Description:

Working capital, leasehold
improvements, equipment

Total Project Costs:

$505,000 (NCIF $250,000)

People:

Annie’s Naturally Bakery is a family affair founded on the experience of four generations of Italian bakers. Thirteen years ago, Joe and Annie Ritota combined Joe’s family baking skill and Annie’s passion for natural and organic food into a successful artisan organic bakery in Western North Carolina. Annie’s sells its artisan organic breads rolls, cookies and pastries to wholesale customers and through its retail bakery and café in Sylva. Embracing the triple bottom line is critical to Annie’s mission, so ecological and social performance objectives are considered with financial performance. The company is an integral participant in the North Carolina Organic Bread Flour Project, which encourages hard wheat production as a solution for farming communities struggling to maintain profitability. Annie’s leadership in this project reflects the company’s commitment to social responsibility and high-quality local ingredients.

As the consumer demand for organic foods has increased, so has Annie’s success. Several large retail stores, such as Whole Foods Market and Harris Teeter, have contracted with Annie’s to supply bread to the region’s stores. Annie’s Sylva location is at capacity, with more than 25 full- and part-time employees, so the bakery is expanding with an Asheville location. The additional bakery will house the company’s wholesale business and enable it to expand its output significantly. The Ritotas and their business partner, John Fisher, will be able to hire an additional 10 full-time and 10 part-time employees over the next two years, further demonstrating the company’s value as an economic driver in the region. Though Annie’s began with Joe baking bread out of his home oven, the bakery has become a social center for Sylva and a leader in organic and socially responsible business practices in Western North Carolina.

Role of NCIF:

In 2009, the Natural Capital Investment Fund met with the Ritotas and their business partner to discuss funding for Annie’s expansion and upfit. The new Asheville location is receiving a “green” makeover that includes sustainable upgrades such as solar thermal heating units and energy efficient ovens. NCIF financing enabled the company to leverage $280,000 in funding from private investors; Mountain Bizworks, a community-development lender in Asheville; and the owner of the building leasing the Asheville space to Annie’s.

Impact:

Using NCIF funding, Annie’s Naturally Bakery was able to move most of its manufacturing operations to its sustainable Asheville location, thereby lowering transportation and operating costs, including purchasing flour in greater bulk at lower prices. The Asheville location helps the company to expand its wholesale business and promote its sustainable business practices. The new location also will enable Annie’s to roll out a new par-baked bread line. Par-baked bread is bread that is partially baked and then flash-frozen. Grocery stores such as Ingles will purchase the frozen bread from Annie’s and then bake the loaves when needed for sale, thereby reducing spoilage. The Asheville location also is large enough to house an Austrian Grist Mill. The grist mill is will help Annie’s to increase its participation in the development of a hard wheat industry through the North Carolina Organic Bread Flour Project.

Company website:

www.anniesnaturallybakery.com