Company Consolidates Personal Care
Manufacturing Footprint, Reduces Portfolio Assortment by
62%
Efforts Underway Across Snacks, Baby/Kids,
Beverages and Meal Prep to Shape a Winning Portfolio
Actions Advance the Focus Pillar of Hain
Reimagined Business Strategy
HOBOKEN,
N.J., April 30, 2024 /CNW/ -- Hain Celestial
Group (Nasdaq: HAIN), a leading global health and wellness company
whose purpose is to inspire healthier living through better-for-you
brands, announced strategic actions the company is taking to
progress the Focus pillar of its Hain
Reimagined business strategy. Key initiatives include
category-wide SKU reductions, consolidation of its operating
footprint, and streamlining its co-manufacturing network, globally.
The steps Hain has taken are unlocking annualized savings,
generating operating cash flow to pay down debt and driving gross
margin expansion.
Hain Celestial Takes Strategic Actions to
Simplify Portfolio & Operating Footprint to Strengthen Balance
Sheet
"This critical work delivers on the commitments we outlined in
the Focus pillar of our Hain Reimagined strategy to design a
winning portfolio of brands across five categories, and to
materially simplify our footprint and leverage scale and synergies
across our five core geographies," said Wendy Davidson, Hain Celestial President and
CEO. "These actions strengthen our focus on driving a core,
hardworking portfolio of brands that produce stronger velocities
and remove operational complexity from our supply chain to drive
margin expansion."
Global SKU Reduction to Shape a Winning Portfolio
Hain
is designing a winning portfolio by actively assessing and
streamlining its brand portfolios. Since July 2023, the company has removed 6% of its SKUs
globally and is expected to increase that number over the next two
years. Today, those reductions are split almost equally between
North America and International
and include brands across the Snacks, Baby/Kids, Beverages, Meal
Prep and Personal Care categories.
- The largest SKU reductions are occurring within Hain's Personal
Care business, which includes hair care, skin care and sun care
under the Alba Botanica®, Jason®, Live Clean® and Avalon Organics®
brands. As part of a comprehensive assessment, Hain is removing 62%
of underperforming SKUs in the portfolio, which will enable the
team to prioritize products that have higher velocities to improve
the portfolio's growth and margin expansion. This work is being
executed in phases to ensure a smooth transition for
customers.
- In Meal Prep, the company is streamlining its Linda McCartney®
Plant-Based (Meat Free) portfolio, which includes a focus on the
frozen portfolio that is sold in Europe and the UK.
- In Snacks, Hain announced the sale of the Thinsters® cookie
brand in April, enabling the company to remove a non-core brand and
category from its Snacks business and utilize cash proceeds to pay
down debt.
- And in the Baby/Kids and Beverages categories, Hain is
adjusting its portfolios as part of ongoing brand maintenance.
Operating Footprint Simplification to Reduce Supply Chain
Complexity
Hain is also streamlining its operating footprint
and leveraging synergies across the business to drive scale as the
company focuses in five core geographies: the U.S., Canada, UK, Ireland and Western
Europe.
- Within Personal Care, Hain announced today that it is
consolidating its manufacturing footprint down to one facility and
eliminating five co-manufacturers from the network. This initiative
will help to expand overall gross margins through improved capacity
utilization and lower manufacturing costs. The phased approached is
expected to be completed in late summer/early fall 2024.
- In Snacks, the Thinsters® divestiture enabled Hain to reduce
its distribution center needs by two and removed a co-manufacturer
from its network, generating annualized cost savings.
- In Meal Prep, Hain consolidated its Yves® Plant-Based (Meat
Free) manufacturing plants in Canada in late fiscal 2023. This move has
enabled greater capacity utilization and delivered overall
operational efficiencies and focus for the Yves brand.
- In April, Hain ceased all production and operations within its
non-strategic joint venture in India, which further streamlines the company's
manufacturing footprint. Hain will continue to supply products in
the IMEA region through the International operating segment.
As Hain is in the foundational year of its Hain Reimagined
strategy, the company is continuing to identify opportunities to
further simplify and streamline the business through optimizing its
operating model, leveraging synergies and scale and continuing to
focus on shaping a winning portfolio. These efforts will
unlock savings to further de-leverage the balance sheet and
reinvest in brand building, channel expansion and innovation. Hain
will share more details during the Q3 2024 earnings call on
May 8, 2024.
About The Hain Celestial Group
Hain Celestial
Group is a leading health and wellness company whose purpose is to
inspire healthier living for people, communities and the planet
through better-for-you brands. For more than 30 years, our
portfolio of beloved brands has intentionally focused on delivering
nutrition and well-being that positively impacts today and
tomorrow. Headquartered in Hoboken,
N.J., Hain Celestial's products across snacks, baby/kids,
beverages, meal preparation, and personal care, are marketed and
sold in over 75 countries around the world. Our leading brands
include Garden Veggie™ snacks, Terra® chips, Garden of Eatin'®
snacks, Earth's Best® and Ella's Kitchen® baby and kids foods,
Celestial Seasonings® teas, Joya® and Natumi® plant-based
beverages, Greek Gods® yogurt, Cully & Sully®, Imagine® and New
Covent Garden® soups, Yves® and Linda
McCartney's® (under license) meat-free, and Alba Botanica®
natural sun care, among others. For more information, visit
hain.com and LinkedIn.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Such statements involve risks, uncertainties, and assumptions. If
the risks or uncertainties ever materialize or the assumptions
prove incorrect, our results may differ materially from those
expressed or implied by such forward-looking statements. The words
"will" "expect," "aim," "may," "should," "plan," "intend,"
"potential" and similar expressions are intended to identify such
forward-looking statements. Forward-looking statements include,
among other things, our beliefs or expectations relating to our
future performance, results of operations and financial condition;
our strategic initiatives; and our business strategy.
The risks and uncertainties that may cause actual results to
differ materially from forward-looking statements are described in
our most recent Annual Report on Form 10-K and our other filings
from time to time with the U.S. Securities and Exchange
Commission.
We undertake no obligation to update forward-looking statements
to reflect actual results or changes in assumptions or
circumstances, except as required by applicable law.
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