Hain Celestial unveils multiyear transformation strategy

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Hain Celestial Group, one of New Jersey’s newest consumer packaged goods giants, is changing up how it does business.

In a Sept. 13 press release in advance of its Investor Day event, the now-Hoboken headquartered maker of brands including Celestial Seasonings tea and Terra chips, unveiled a multiyear transformation strategy aimed at driving long-term sustainable growth.

As part of that plan, Hain will launch a formal restructuring program intended to expand operating margins through the optimization of its brand portfolio, organization, supply chain and working capital.

According to Hain, the company will build its portfolio around five consumer-centric better-for-you categories, with clearly defined roles for each:

• Snacks
• Baby & kids
• Beverages
• Meal prep
• Personal care

Hain will also simplify its focus to five key markets – the U.S., Canada, the U.K, Ireland and Europe – and better align its global operating model and footprint to leverage scale and realize synergies between businesses.

Hain Reimagined

Through its restructuring program, Hain is targeting $130 million to $150 million of annualized savings and a $165 million conversion of working capital cash by fiscal year 2027. It also expects to incur one-time restructuring and related costs in the range of $115 million to $125 million across fiscal years 2024 and 2025.

The announcement comes about eight months after Wendy Davidson took the helm as chief executive office of the struggling food and beverage company. After reviewing operations at Hain, Davidson – a CPG veteran who has worked at Kellogg, McCormick & Co. and Tyson Foods – rolled out a plan to get the business headed in the right direction.

During fiscal year 2024, the foundational year of the “Hain Reimagined” plan, Davidson said the company will take several steps to simplify the business, reset its global operating model and invest in jumpstarting critical capabilities around brand building, channel expansion and innovation.

“By fiscal 2027, we expect to deliver sustained revenue and profit growth with a reimagined end-to-end supply chain, modern digital infrastructure, and performance driven culture that will enable our brands to expand reach and grow share. I look forward to executing our strategy to realize our full potential and deliver on our purpose to inspire healthier living for people, communities, and the planet through better-for-you brands,” she said in a statement.

The transformation also includes a refreshed logo, purpose and values, which were unveiled during the Sept. 13 Investor Day event in New York City.

“Our new corporate identity represents our vision of Hain’s future as a leading global manufacturer of better-for-you brands and marks a significant turning point in our company’s 30-year history,” said Davidson.

“After thoughtful planning and feedback received from our teams around the world, ‘The Hain Way’ articulates our company ethos and what brings us together as One Hain Team,” she added.

“As we transform into a globally integrated enterprise, our focused portfolio of better-for-you brands enables us to deliver on our purpose and our ability to meet the evolving needs of our consumers and customers.”

Founded in 1993, Hain is focused on crafting natural foods and beverages, as well as botanically based personal care products. Its portfolio of brands – which are marketed and sold in over 75 countries – includes Garden Veggies Snacks, Earth’s Best baby foods, Joya plant-based beverages, Greek Gods yogurt, Covent Garden soups, Garden of Eatin’ snacks, Live Clean personal care products and Alba Botanica natural sun care.

Once a leader in the better-for-you space, Hain has begun to face competition from larger CPG companies, as well as headwinds like inflation, supply chain disruptions and the pandemic.

In August, Hain announced plans to relocate its headquarters this fall from New York to New Jersey. As part of its move from Long Island into the Waterfront Corporate Center in Hoboken, the company adopted a flexible work model to deliver even greater value as a globally integrated enterprise.

With Hoboken as the hub of its global operations, Hain offices and manufacturing facilities in the U.S., Canada, Europe and other international locations will serve as “spokes” for employees to come together and collaborate, the company said.

Additionally, the new space houses Hain’s Innovation Experience Center, which will be a place for team members, customers and consumers to “immerse themselves” in the company’s products, “explore consumers insights and create innovative opportunities for the future.”

Hain will also continue to leverage research & development labs at its manufacturing facilities for more comprehensive product development and scale.