Muesli giant Carman’s buys Fruit Wise, marking the company’s first acquisition after 30 years in business

The founder of Australian muesli giant Carman’s loved the fruit straps she packed in her kids’ lunchboxes so much, she bought the company.

Carman’s acquired Australian-owned and made snacking brand Fruit Wise for an undisclosed sum in October after a year of discussions.

It’s Carman’s first acquisition in a journey that began when founder and CEO Carolyn Creswell bought the tiny business as an 18-year-old for $1000.

Creswell says the family-owned companies shared “unparalleled similarities” and joining them was a “proud moment”.

“This was just a product that I loved and I had been buying it for 15 years. It wasn’t so much about us going out and actively looking to do an acquisition,” she said.

Creswell first approached Fruit Wise about 15 years ago seeking a potential collaboration, but it never got off the ground.

She again contacted the company a year ago and learned the owners were considering selling.

“I was like, ‘Oh my gosh, that’d be amazing’,” she said.

“I just passionately believe in the product they make, so I was super excited to have the opportunity.”

The companies shared similar outlooks, both being locally made, family-owned and focused on healthy, quality snacks.

“Our philosophy at Carman’s is we want real food — and that’s what this is — and it’s got to be yum,” she said.

“At the end of the day, I’m also a mum, and I’m looking for things to put in my kids’ lunchbox.”

Building the brand

Fruit Wise’s factory and staff will remain in the Adelaide Hills under the acquisition.

Fruit Wise managing director Bridget Beal says the company knew immediately it was the right move and could not wait to see the brand grow under Carman’s.

“We’ve been family owned for 15 years, so we wanted to make sure we were passing over the reins to someone just like Carolyn, who shared the same outlook about delicious and healthy snacking and looking after Aussie families,” she said.

Creswell says that as a small player, Fruit Wise lacked the ability to take the business to the next level, but Carman’s could elevate the brand with it’s strong name and distribution channels.

“We didn’t have anything that could have competed against Roll Ups, and now we have I think the best lunchbox option,” she said.

While new products are on the cards, the first focus will be on meeting demand, she added.

From small player to trendsetter

The acquisition marks a new phase for Carman’s, which emerged from humble beginnings to now exporting products to 32 countries.

It all began when Creswell was studying at university and the muesli business she worked for planned to shut.

“They told me I was going to lose my job. I thought, ‘Alright, I’m here, why couldn’t I do this?”

She bought the business with a partner, then acquired her share two years later.

She performed deliveries and balanced books between lectures and leaned on people she knew for advice.

“I was in the right place at the right time and probably had the right attitude, and it’s 30 years this December,” she said.

“I thought, ‘Well, what’s the worst that’s going to happen? I’ll lose my $1000.

“It’s just been constant learning.”

The early days and long hours were hard and she “didn’t make any money for years”.

“If I could have given the business away, I would have,” she said.

Success came about five years in, when Carman’s got its products stocked in Coles.

“I literally walked out of the meeting and had tears dripping off my chin on Toorak Road. That was the big break.”

Timing worked in her favour as people became more health conscious and ingredients focused.

“When I first started muesli was really daggy, then all of a sudden the food trend went our way,” she said.

The company invested money back into its ingredients and today’s product range includes muesli bars, protein bars, nut bars and cereals.

Creswell has witnessed the changing food trends over time.

“When I started, everything was 99% fat free, no one cared about sugar,” she said.

“Then we went through this whole carb phase where everyone was like: ‘You can’t eat bread’.

“Now we’re in a really strong no sugar phase, which is the complete opposite of when I started.

“And now, people want to have natural fats. They want to have the coconut, the almonds.”

While Carman’s may “possibly” undertake more acquisitions in future, Creswell said it’s not actively seeking them.

Her focus now is in product development and eyeing overseas food trends, which are about two years ahead of Australia.

“I always laugh that I can tell you what you’re going to be eating before you know,” she said.