HISTORY OF BARREL O' FUN

Barrel O' Fun began in the spring of 1973 by the father and son team of Tuffy and Ken Nelson at Perham, Minnesota. The company began with approximately 10 employees and produced potato chips, extruded cheese curls, and popcorn. Products were primarily marketed in Minnesota, North and South Dakota. Distribution was by company-owned routes direct to stores as well as to candy and tobacco jobbers within the marketing area. From 1973 through 1979 sales efforts were directed towards small bag (bar and restaurant) accounts. The retail grocery line was very limited. Sales doubled each year in 1979 and 1980. The company concentrated on manufacturing, while the marketing department secured many new wholesale and distributor accounts.

In April 1981, the company was sold to the G. Heileman Brewing Co. of LaCrosse, Wisconsin. Additional capital was needed to produce sufficient product for new distributors. The company expanded with new products and packaging to become a more viable supplier to retail grocers. By 1982 the company employed 75 people.

Over the next four years the company installed larger, more automated production equipment. The sales department began controlled marketing into new territories. Additional flavors were added to basic product to gain additional sales, and private label sales became a much larger part of the business.

In July of 1988, the company was repurchased from G. Heileman Brewing Co. by Ken Nelson, a group of managers, and an outside investor. This ownership continued until November of 1995 when the outside investor was bought by Ken Nelson and two additional investors. By this time employment had grown to over 350 people.

Shortly after the above buyout, a parent corporation, "KLN Enterprises, Inc." was formed to hold stock and manage both Barrel O' Fun Snack Foods Company and Kenny's Candy Company.

Today Barrel O' Fun distributors market both lines of product, along with non-manufactured products which the company sells through its "Allied" division. The company continues to enjoy increased sales, primarily the results of efforts to find "niche" markets and capitalize on them.

The future is both exciting and challenging. The company continues to position itself to supply the ongoing needs of its customers. Barrel O' Fun will celebrate 32 years in the snack food business the summer of 2005.