Hain Celestial Takes Strategic Actions to Simplify Portfolio & Operating Footprint to Reduce Complexity, Strengthen Balance Sheet

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 /PRNewswire/ -- 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.

"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