Hain is investing in relaunching and refreshing its SunSpire chocolates and DeBoles pasta lines.
Eye on $5 billion business
The delay in the filing of Hain’s financials also has muddied the waters on some major changes the company unveiled earlier this spring as it sets its sights on going from a $3 billion business to a $5 billion business. In November 2015, Hain Celestial launched Project Terra, a strategic review of the company, and in May 2016, management said one of the changes to come out of the program would be a $100 million global cost savings plan over the next two fiscal years, beginning with fiscal 2017.
“We have identified at least $100 million of synergies and savings that we think we can take out of this business as we integrate acquisitions from around the world,” Irwin Simon, chairman, president and chief executive officer, said during the BMO Capital Markets Farm to Market Conference held May 19 in New York. “And that is going to come from procurement and logistics. … we are a complex business.”
As part of Project Terra, Hain Celestial is restructuring its business into five strategic platforms, launching a venture unit and selling brands that no longer fit within its growth strategy.
The five platforms, defined by common consumer need, route-to-market or internal advantage, will be: Fresh Living, which includes poultry, yogurt, plant-based proteins and other refrigerated products; Better-for-You Baby, which includes infant foods and formula and personal care products for babies and toddlers; Better-for-You Snacking, which includes wholesome snack products; Better-for-You Pantry, which includes core consumer staples; and Pure Personal Care.
The company also has launched Cultivate Ventures, a venture capital unit with the purpose to invest in relaunching and refreshing Hain’s smaller brands in high-growth categories, including SunSpire chocolates and DeBoles pasta; to incubate small acquisitions; and to invest in concepts, products and technology with a health and wellness focus.
“What our plan is, is to take some of our brands that haven’t been getting the love, put them in a venture group, look to the small acquisitions in the $5 million to $10 million range, use the Hain infrastructure procurement to put those through,” Mr. Simon said.