Food Business News - June 7, 2011 - (Page 30)

Clear sailing for Hain C.F.O. offers upbeat view of company’s positioning, trends and prospects “None of our products have high-fructose corn syrup,” Mr. Lamel said. “They never have. No trans fat. Never have. We don’t want them.” Acknowledging that Hain’s portfolio of products is bulging with different brands, Mr. Lamel noted 80% of the company’s sales come from only 18 brands. “There are some smaller brands out there, but they have a place on the shelf,” he said. “And we continue to operate those brands. Some of them are cash cows, and there is no reason to give them up. But we really are focused on the top brands.” Expanding on his overview of the company, Mr. Lamel said most of the company’s brands hold the top position or No. 2 position in the natural and organic segment. Among reasons Mr. Lamel offered for optimism for Hain Celestial prospects, he described consumption trends as “accelerating.” “In the United States we have had six consecutive quarters of growing consumption trends in 12-week measured periods year over year,” he said. “The last two quarters we have seen 6% consumption increases year over year. So we have been seeing very strong growth, and we’re hopeful that will continue.” With annual sales of about $600 million, the Hain grocery business is led by its Earth’s Best brand infant and toddler food business. Other brands include Health Valley soups and cereals, Imagine soups and Soy Dream and Rice Dream. “Soy is not as popular as it was a few years ago, but sales are still strong in the non-dairy beverage business because of the popularity of almond-based non-dairy beverages,” Mr. Lamel said. “And we have both almond and other Almond Dream nondairy beverages. Our Rice Dream continues to be a very strong player both in the states and in Europe.” Hain’s snack business, with its legacy brands of Terra chips and Garden of Eden, expanded in June 2010 with the acquisition of Sensible Portions, Mr. Lamel said. He described the brand’s veggie straws as “very popular” and particularly strong in the club channel, notably the Costco chain. “Not only are we very excited about the addition of that brand and that product into our portfolio, but we are very excited about capitalizing on the expertise the people at Sensible Portions have in the club channel,” Mr. Lamel said. “Prior to that acquisition, we didn’t have a lot of business in the club channel, maybe $20 million or so. But Sensible Portions is really making some great inroads for us.” He also praised the Sensible Portions research and development team for its product innovation capabilities. “There is a very strong history of innovation in this business,” he said. “It’s one of the things that attracted us, not just their presence in club stores. Their ability to take an idea and go to market with the product is incredible. It could be a matter of weeks. With most large food companies, it can take months or years to bring a new product to market.” He said Sensible Portions sales have nearly doubled since the acquisition. A smaller acquisition Mr. Lamel described as successful was Greek Gods yogurt. “While the Greek yogurt segment is up 60 (per cent year over year), this business in the third quarter was up 100% over the prior year’s first quarter,” he said. “This was a great acquisition. It came to us with all of six employees.” FBN NEW YORK — With the company well positioned in an advantaged category, successfully executing acquisitions and new product introductions, the Hain Celestial Group enjoys good growth prospects, said Ira Lamel, executive vice-president and chief financial officer. Mr. Lamel spoke May 25 about Melville, N.Y.-based Hain at the CITI Global Consumer Conference in New York. Mr. Lamel described Hain Celestial as a leader in the natural and organic segment, a category he said grew 7.5% in 2010, easily eclipsing the 1% growth rate for food sales overall. Evidence of increasing consumer interest in natural and organic products may be seen in the growing number of products labeled as low sodium, low in sugar or with no high-fructose corn syrup. 30 FOODBUSINESS NEWS ® June 7, 2011

Table of Contents for the Digital Edition of Food Business News - June 7, 2011

Food Business News - June 7, 2011
House bill cuts food safety funding
Enhancing water’s value
Wet weather muddies corn outlook
Contents
Web Contents
Editorial - Quest for ‘whole truth’ on food prices in France
MyPlate steps up in simple fashion
Breaking down MyPlate by food groups
Lawmakers look to halt sale of Lazy Cakes
McCormick to enter joint venture in India
Cal Pacifi c acquires SunOpta frozen fruit assets
Cargill Kitchen Solutions expanding in Iowa
F.M.I. hires new v.p. of food safety programs
Sealed Air to acquire Diversey for $4.3 billion
AdvancePierre Foods buys Barber Foods
Cargill acquires German chocolate business
Calavo to buy Renaissance Food Group
U.S. Foodservice acquires Great Western Meats
Clear sailing for Hain
Seneca Foods earnings down sharply in 2011
April red meat production down 4% from year ago
Sbarro now exploring alternatives to bankruptcy plan
Sherman Miller promoted to c.o.o. at Cal-Maine Foods
Nestle Health Science to acquire pharmaceutical maker
Emerging markets propel Heinz’s fi scal 2011 earnings
U.S.D.A. lowers cooking temp for some meat cuts
Campbell Soup focusing on volume sales, brand building
Buyout fi rm to acquire California Pizza Kitchen
Sanderson Farms suffers second-quarter loss
Wet weather muddies corn outlook
House bill cuts food safety funding
House panel seeks reduction in W.I.C. funding in fiscal 2012
Seeking middle market opportunities
Clear and concise
Ingredient solutions help keep it simple
Identifying natural partners for stevia
$tevia $upplier$ $eek profi t$ through international growth
Brain health for baby boomers
BEVERAGE BUSINESS NEWS
Bottled water volume, market share grew in 2010
Study recommends children should avoid energy, sports drinks
V8 introduces energy beverages
Smucker, Starbucks raising coffee prices
Nestle launches Aguas Frescas bottled beverage
Jamba introduces coconut water-based beverages
Enhancing water’s value
Gluten-free grains momentum
Balance Bar adds Café line
Pasta Prima launches two ravioli lines
Land O’Frost debuts Wrap Kit
Franz introduces artisan bread
Kraft launches Newtons Fruit Thins
Farley’s & Sathers adds ‘Splashers’
Häagen-Dazs introduces 2011 flavors
Mars updates Kudos granola bar line
INGREDIENT MARKET TRENDS
Lifting of Russian export ban pressures world wheat market
Ingredient Markets
Packaging formats focus on convenience
Technology enables ultrasonic sealing
Ingredient’s small size aids in salt reduction
AKFP now offers arrowroot starch, pea starch
Tate & Lyle to resume U.S. sucralose production
Non-dairy ingredients achieve pareve certifi cation
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - June 7, 2011

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