The Hain Celestial Group, Inc., together with its subsidiaries, operates as a global health and wellness company.
The company focuses on delivering nutrition and well-being that positively impacts today and tomorrow. The company's products across snacks, baby & kids, beverages, meal preparation and personal care, are marketed and sold in over 70 countries around the world.
The company's leading brands include Garden Veggie Snacks, Terra chips, Garden of Eatin' snacks, Hartley's Jelly, Earth's...
The Hain Celestial Group, Inc., together with its subsidiaries, operates as a global health and wellness company.
The company focuses on delivering nutrition and well-being that positively impacts today and tomorrow. The company's products across snacks, baby & kids, beverages, meal preparation and personal care, are marketed and sold in over 70 countries around the world.
The company's leading brands include Garden Veggie Snacks, Terra chips, Garden of Eatin' snacks, Hartley's Jelly, 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, Yorkshire Provender, New Covent Garden and Imagine soups, Yves and Linda McCartney's (under license) meat-free, and Avalon Organics personal care, among others.
Seasonality
Certain of the company's product lines have seasonal fluctuations in demand. Hot tea, hot-eating desserts and soup sales are stronger in colder months, while sales of snack foods, sunscreen and certain of the company's personal care products are stronger in the warmer months. Historically, net sales and diluted earnings per share in the first fiscal quarter have typically been the lowest of the company's four quarters (year ended June 2024).
Segments
The company operates through two geographic based reportable segments, North America and International.
North America segment
United States
The company's products are sold throughout the U.S. The company's customer base consists principally of specialty and natural food distributors, supermarkets and natural food stores, mass-market, club stores, e-commerce retailers, and away from home channels, including drug and convenience stores and food service. The company's products are sold through a combination of direct salespeople, brokers and distributors. The company's direct salespeople combined with brokers and distributors provide an effective means of reaching a broad and diverse customer base. Brokers act as agents for the comapny within designated territories and receive commissions. A portion of the company's direct sales force is organized into dedicated teams to serve its significant customers.
A significant portion of the products marketed by the company are sold through independent distributors. Food distributors purchase products from the company for resale to retailers.
The brands sold in the U.S. include:
Garden Veggie snack products, including Garden Veggie Straws, Garden Veggie Chips, Flavor Burst and Apple Straws, Terra varieties of root vegetable chips, potato chips, and other exotic vegetable chips, Garden of Eatin' tortilla chips and ParmCrisps.
Tea products under the Celestial Seasonings brand and include varieties of herbal, green, black, wellness, rooibos and chai teas, with well-known names and products, such as Sleepytime, Lemon Zinger, Red Zinger, Cinnamon Apple Spice, Bengal Spice, Country Peach Passion and Tea Well.
Baby and kid food products include infant and toddler formula, infant cereals, baby food pouches, snacks and frozen toddler and kids' foods under the Earth's Best and Earth's Best Sesame Street (under license) brands.
Yogurt products include The Greek Gods Greek-style yogurt products.
Personal care products include hand, skin, hair and sun care products under the Alba Botanica, Avalon Organics and JASON brands.
Other products include Spectrum culinary oils, vinegars and condiments, Spectrum Essentials nutritional oils and supplements, MaraNatha nut butters, Imagine broths and soups.
Canada
The company's products are sold throughout Canada. The company's customer base consists principally of grocery supermarkets, club stores, mass merchandisers, natural food distributors, drug store chains, personal care distributors, and food service distributors. The company's products are sold through its own retail direct sales force. The company also utilizes third-party brokers who receive commissions and sell to food service and retail customers. The company utilizes a third-party merchandising team for retail execution. As in the U.S., a portion of the products marketed by the company are sold through independent distributors.
The brands sold in Canada include Yves Veggie Cuisine refrigerated and frozen meat-alternative snacks and meals, vegetables and lentils, Earth's Best infant formula, MaraNatha nut butters, Spectrum cooking and culinary oils, Imagine soups, The Greek Gods Greek-style yogurt and Robertson's marmalades. Other food and beverage brands include Celestial Seasonings teas, Terra chips and Garden Veggie and Sensible Portions snack products. The company's personal care products include skin, hair and oral care products, sun care products and deodorants under the Alba Botanica, Avalon Organics, JASON and Live Clean brands.
International segment
United Kingdom
In the United Kingdom, the company's products include baby and toddler food, soups, plant-based and meat-free dishes and meals, as well as ambient products such as jams, fruit spreads, jellies, honey, marmalades, nut butters, syrups and dessert sauces.
The products sold in the United Kingdom include Ella's Kitchen premium organic infant and toddler foods, New Covent Garden Soup Co. and Yorkshire Provender chilled soups, private label and Farmhouse Fare hot-eating desserts, Linda McCartney's (under license) chilled and frozen plant-based dishes and meals, Hartley's jams, fruit spreads and jellies, Sun-Pat nut butters, Clarks natural sweeteners and Robertson's, Frank Cooper's and Rose's (under license) marmalades and conserves. The company also provides a comprehensive range of private label products to many grocery and organic food retailers, convenience stores and food service providers in the following categories: fresh soup, chilled desserts, meat-free dishes and meals and ambient grocery products.
The company's products are principally sold throughout the United Kingdom and Ireland but are also sold in Europe and other parts of the world. The company's customer base consists principally of retailers, convenience stores, food service providers, business to business, natural food and ethnic specialty distributors, club stores, e-commerce retailers and wholesalers.
Western Europe
The company's products sold by the Western Europe reporting unit include, among others, products sold under the Joya, Lima and Natumi brands. The Lima brand includes a wide range of organic products, such as soy sauce, plant-based beverages, tea and coffee alternatives and grain cakes, as well as grains, pasta, cereals, miso, snacks, spreads, soups and condiments. The company's Natumi brand includes plant-based beverages, including rice, soy, oat and spelt. The company's Joya brand includes soy, oat, rice and nut-based drinks, as well as plant-based yogurts, desserts and creamers. The company also sells its Hartley's jams, fruit spreads and jellies, Terra varieties of root vegetable and potato chips, Celestial Seasonings teas, Linda McCartney's (under license) frozen plant-based dishes and meals, Cully & Sully chilled soups and ready meals, Happy Rice drink and private label products in Western Europe.
The company's products are sold in grocery stores and organic food stores throughout Europe, the Middle East and Africa. The company's products are sold using its own direct sales force and local distributors.
Customers
Walmart Inc. and its affiliates together accounted for approximately 18% of the company's consolidated sales for the fiscal years ended June 30, 2023, which was related to both of the company's reportable segments, North America and International.
Foreign Operations
The company sells its products to customers worldwide. Sales outside of the U.S. represented approximately 46% of the company's consolidated net sales in fiscal 2024.
Marketing
The company uses a combination of trade and consumer advertising and promotion. Trade advertising and promotion includes placement fees, cooperative advertising, feature advertising in distribution catalogs and in-store merchandising in prominent and secondary locations.
Consumer advertising and promotion is used to build brand awareness and equity, drive trial to bring in new consumers and retain existing users to increase household penetration and consumption. Paid social and digital advertising, including retailer media and public relations programs, are the main drivers of brand awareness. Trial and conversion tactics include, but are not limited to, product search on Google and e-commerce sites, digital coupons, product sampling, direct mail and e-consumer relationship programs. Additionally, brand specific websites and social media pages are used to engage consumers with lifestyle, product and usage information related to specific brands.
The company also utilizes marketing arrangements with third parties to help create awareness and advocacy. For example, the company's Earth's Best brand has an agreement with PBS Kids and Sesame Workshop in North America, leveraging popular characters for on and off packaging communications. The company also leverages various influencers to help increase brand reach and relevance.
Production
Manufacturing
The company's North America reportable segment operates the following manufacturing facilities:
Boulder, Colorado, which produces Celestial Seasonings teas;
Mountville, Pennsylvania, which produces Garden Veggie, Sensible Portions and Terra snack products;
Lancaster, Pennsylvania, which produces snack products;
York, Pennsylvania, which produces ParmCrisps;
Vancouver, British Columbia, which produces Yves Veggie Cuisine plant-based snacks and meals; and
Mississauga, Ontario, which produces Live Clean, Alba Botanica, Avalon Organics, and JASON personal care products.
The company's International reportable segment operates the following manufacturing facilities:
Histon, England, which produces the company's ambient grocery products including Hartley's, Frank Cooper's, Robertson's and Clarks;
Grimsby, England, which produces the company's New Covent Garden Soup Co. and Yorkshire Provender chilled soups;
Clitheroe, England, which produces the company's private label and Farmhouse Fare hot-eating desserts;
Fakenham, England, which produces Linda McCartney's (under license) meat-free frozen and chilled dishes and meals;
Troisdorf, Germany, which produces Natumi, Lima, Joya and other plant-based beverages and private label products;
Oberwart, Austria, which produces the company's Lima and Joya plant-based foods and beverages, creamers, cooking creams and private label products; and
Schwerin, Germany, which also produces the company's Limaand Joya plant-based foods and beverages and private label products.
Contract Manufacturers
In addition to the products manufactured in the company's own facilities, independent third-party contract manufacturers, who are referred to in the company's industry as co-manufacturers or co-packers, manufacture many of its products. The company's contract manufacturers have been selected based on their production capabilities, capitalization and their specific product category expertise, and it expects to continue to partner with them to improve and expand its product offerings. The company requires that its co-packers comply with all applicable regulations and its quality and food safety program requirements, and compliance is verified through auditing and other activities. Additionally, the co-packers are required to ensure the company's products are manufactured in accordance with its finished goods specifications to ensure it meets customer expectations.
Competition
The company's products compete with both large conventional packaged goods companies and natural and organic packaged foods companies. Many of these competitors enjoy significantly greater resources. Large conventional packaged foods competitors include Campbell Soup Company, Conagra Brands, Inc., Danone S.A., General Mills, Inc., The Hershey Company, The J.M. Smucker Company, Kellanova, Mondelez International, Inc., Nestle S.A. and PepsiCo, Inc. Large conventional personal care products companies with whom the company competes include, but are not limited to, The Clorox Company, Colgate-Palmolive Company, Johnson & Johnson, The Procter & Gamble Company and S. C. Johnson & Son, Inc.
Trademarks
The company generally registers its trademarks and brand names in the U.S., Canada, the European Union, and the U.K. and/or other foreign countries depending on the area of distribution of the applicable products.
The company also markets products under brands licensed under trademark license agreements, including Linda McCartney's, Rose's, the Sesame Street name and logo and other Sesame Workshop intellectual property on certain of the company's Earth's Best products, as well as the Paddington Bear image on certain of its Robertson's products.
Government Regulation
The company is subject to extensive regulations in the U.S. by federal, state and local government authorities. In the U.S., the federal agencies governing the manufacture, marketing and distribution of the company's products include, among others, the Federal Trade Commission (FTC), the United States Food & Drug Administration (FDA), the United States Department of Agriculture (USDA), the United States Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA). Under various statutes, these agencies prescribe and establish, among other things, the requirements and standards for quality, safety and representation of the company's products to the consumer in labeling and advertising.
Internationally, the company is subject to the laws and regulatory authorities of the foreign jurisdictions in which it manufactures and sells its products, including the Canadian Food Inspection Agency, Health Canada, Food Standards Agency in the United Kingdom, and the European Food Safety Authority.
Quality Control
In the U.S., each of the company's own food manufacturing facilities has a Food Safety Plan (FSP), which focuses on preventing food safety risks and is compliant with the requirements set forth under the Food Safety Modernization Act (FSMA).
Independent Certifications
Substantially all of the company's Hain-owned manufacturing sites and a significant number of its contract manufacturers are certified against a recognized standard such as the Global Food Safety Initiative (GFSI), which includes Safe Quality Foods (SQF) and British Retail Consortium (BRC), or ISO 9001 Quality Management Systems and ISO 22716 GMP Cosmetic and Personal Care.
In the U.S., the company's organic products are certified in accordance with the USDA's National Organic Program through Quality Assurance International (QAI), a third-party certifying agency.
Many of the company's products are certified kosher under the supervision of accredited agencies including The Union of Orthodox Jewish Congregations and 'KOF-K' Kosher Supervision.
The company also works with other non-governmental organizations, such as NSF International, which developed the NSF/ANSI 305 Standard for Personal Care Products Containing Organic Ingredients and provides third-party certification through QAI for certain of our personal care products. In addition, the company works with other nongovernmental organizations, such as the Gluten Free Intolerance Group, Fair Trade USA, Environmental Working Group, The Skin Cancer Foundation, Coalition for Consumer Information on Cosmetics/Leaping Bunny, The Roundtable on Sustainable Palm Oil and the Non-GMO Project.
Research and Development
The company's research and development costs amounted to $5,366 in the year ended June 30, 2024.
History
The Hain Celestial Group, Inc. was founded in 1993. The company, a Delaware corporation, was incorporated in 1993.
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