Rapunzel grew by more than 14 % in 2005

Rapunzel’s 30 year anniversary was a very special occasion. They celebrated this major birthday over the whole year with a lot of special campaigns that encouraged the trade and consumers to go for the Rapunzel brand more than ever before. This was reflected in the decidedly positive annual results of Rapunzel AG.  With 14.5 % growth in turnover, this wholefood pioneer performed brilliantly in 2005.

Picture: This manufacturer of wholefoods can look confidently into the future

The founder of the firm, Joseph Wilhelm, attributes this outstanding success not least to the decision to restructure the company two and a half years ago. By changing the sales channels in the autumn of 2003, Rapunzel acquired the independence it wanted to continue growing. “The year 2005 was a real highlight in the company’s history,” is what it says in the annual report. In other words: a sharp increase in turnover of 9.6 million Euros to a total of 75.84 Million Euros. Recent years had, however, been less impressive: in the year of conversion to supplying direct (2003), turnover even dropped by 4 %, and in 2004 the company only managed an increase of 3.6 % (66.2 million Euros). But now turnover is set to grow in double figures and in the current financial year this company down in the south of Germany is anticipating a rise of more than 14 % to around 86 million Euros. By halfway through the year the signs are that it will reach its target (see graphic/Rapunzel's net turnover in million Euros).

As well as the growing acceptance of direct supplies, the annual report refers to other factors contributing to the positive results, such as a bundle of measures in marketing and in the internal structure of the company. The anniversary campaign with large-scale poster advertising, the Rapunzel bus, special anniversary articles and 20,000 visitors at the festival in the autumn all did a great deal to draw attention to the brand and to add to the company’s positive image. Even a number of lifestyle magazines had pictures of the wholefood pioneers who are totally committed to the cause of organics and even claim: “We legalized Müsli“ (picture). With the internal restructuring in place, the logistics centre in Bad Grönenbach running smoothly and the field service and the in-house customer service being systematically expanded, it all seems to be working well and justifies the company’s ambitious targets for the future.

Joseph Wilhelm (pictured on the left with his daughters), the managing director of the company that now has 300 employees and a wage bill of 9.2 million Euros  each year,  stresses in the foreword of the annual report that ‘behind the figures there are always people’. On the one hand, a committed workforce, on the other the customers who have taken notice of the message.  He is heartened by the fact that there are more and more people helping organics to become a part of normal everyday life. In view of the increasing involvement of the conventional food retail trade, in particular the discounters, he considers it important that the company remains focused on its core values: genuine sustainability and its sense of social responsibility. He finds it disconcerting that precisely those firms in the food trade that were heavily involved in pushing down quality and prices are now trying to create a new image for themselves with organics.

Notwithstanding this development, Rapunzel itself has a foot in the door of the conventional food trade: the turnover of the retail brand BioGourmet increased by 150 % last year.

As a private label producer for various companies, Rapunzel recorded growth of 15 %. In all, the production of other companies’ brands rose by almost 25 % and contributed 11.3 million Euros to total turnover. Trade in raw materials continues to be an important component of the business (14.1 million Euros).

However, the 400 Rapunzel brand products, that brought in just under 52 million Euros, account for the biggest share in turnover. The focus on the Rapunzel brand was given more impetus when trademark rights were secured in all relevant countries in 2005. The development of the brand sector of the business shows that the decision was correct: both at home and abroad, sales of the Rapunzel brand have grown by 7.3 million Euros (+ 16.3 %), which is significantly higher than the turnover of packaged goods in the specialist trade in general.

The Rapunzel brand has also achieved positive figures in the export trade - exports of brand articles grew by 18 %, with total exports increasing by two million Euros compared to the previous year. Exports account for 34 % of total turnover. Certification in keeping with IFS (International Food Standard) promises to make the conditions for exporting even better.  Noticeably less buoyant is the development of its subsidiaries abroad that, according to the annual report, require heavy investment in terms of management and capital. In the USA, a remedy has been found in the form of a new business partner, Global Organic Brand: a contract giving exclusive rights and the use of the Rapunzel brand has been operating since the middle of 2005. The development of turnover is described as very promising.

The conclusion is that Rapunzel, the ‘founding father’ of the wholefood trade, is doing well. The company has recovered its authenticity and is proving its capability by facing the test of consumer confidence. Three certificates presented in 2005 are testimony to the enterprise and personal commitment of Joseph Wilhelm: the first, ’Ethics in Business’ recognised the company as a leader in ethical trading; the second was the Bavarian medal for services benefiting the environment and health; the third was from the Association for Healthy Food honouring Joseph Wilhelm in recognition and appreciation of his special achievements.