The US-based Hain Celestial has unveiled plans to streamline its array of food and beverage products to bolster future growth.
This initiative will impact its offerings in meal preparation, snacks, as well as food and drinks for babies and children.
In the meal preparation segment, the company aims to optimise its Linda McCartney plant-based meats selection, focusing particularly on the frozen products sold across Europe and the UK.
Additionally, the producer of Terra vegetable crisps is set to revise its baby and children’s food and drinks lineup, “as part of ongoing brand maintenance.”
The streamlining effort included the recent divestiture of its Thinsters cookie brand, which Hain Celestial transferred to its domestic counterpart, J&J Snack Foods, in April for an undisclosed amount.
In the previous month, the owner of Natumi milk alternatives ceased operations of its joint venture with Indian FMCG company Future Consumer, established in 2017 with the aim of broadening Hain Celestial’s reach in the Indian market.
These streamlining moves are in line with the ‘Hain Reimagined’ strategy that the company launched in September 2023. As part of this strategy, Hain Celestial is focusing on enhancing its five primary product categories—snacks, meat and dairy alternatives, tea, foods, and personal care—in key markets including the US, Canada, UK, Ireland, and Western Europe.
Hain Celestial reported that these organisational changes are aiding in cost reduction, enhancing cash flow, decreasing debt, and improving gross margins.
While the strategy is still in the preliminary stages, the Yorkshire Provender soups manufacturer mentioned it is “continuing to identify opportunities to further simplify and streamline the business.”
Further information on the consolidation efforts is expected to be shared in the company’s third-quarter earnings call next week.
Wendy Davidson, President and CEO of Hain Celestial, stated, “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. 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.”
