As indicated by the title, the album is based loosely around the George Orwell fable Animal Farm.

Ribbons and Sugar is notably different from the group's debut album, Why We Fight, which according to guitarist Bobby Darling is due to their unusual time signatures and a lack of choruses led to critical acclaim, however, it also led to various feuds with multiple record labels.

"Cut the Strings" and later "The Dragon of Pendor" (featured on In the Land of Lost Monsters) dealt specifically with the integrity issues they faced when told to write choruses for their songs.

During the recording sessions of Ribbons and Sugar, the band consisted of Nic Newsham on vocals, Bobby Darling and Ryan Van Wieringen on both guitar and backup vocals, Kirk Huffman on bass, and Rudy Gajadhar on drums.

Before long, Mollie runs away to another farm where she can eat sugar and wear ribbons in her mane.