Milling & Baking News Corporate Profiles - November 2013 - (Page 98)

Company Overview Hain Celestial Group, Inc. Demand for natural, organic and wholesome foods fuels the company T he Hain Celestial Group Inc. is a patchwork of businesses all capitalizing on the trends of organic, natural and clean label that have become prominent in the food and beverage category over the years. With fiscal 2013 sales of $1.7 billion, the company's business interests range from North America, the United Kingdom and Europe, and into such diverse products as tea, yogurt, infant formula, granola bars, beverages, frozen desserts, deodorants and diapers. "When you look at the entire food industry, our organic and natural products outpace conventional products by three times," said Irwin D. Simon, president and chief executive officer, during an Aug. 21 earnings call with analysts. "Overall food consumption is not growing. Consumers are seeking out more and more organic and natural products versus conventional products." The trend translated to a 26% jump in net sales for the year ended June 30, up from $1.4 billion for fiscal 2012. Sales in the United States surpassed $1 billion during the year - a first for the company. Net income for the fiscal year increased 45% to $114.7 million from $79.2 million during fiscal 2012. "On a global basis, people are increasingly aware of what they consume with a focus on health and wellness," Mr. Simon said. "... in the U.S., the (Centers for Disease Control and Prevention) recently showed some stabilization in obesity rates in adults, the first time in a long time, and even a decline in obesity rates in children across several states, which is music to my ears. So, we believe healthy eating is here to stay with a broader consumer focus on products that are organic, natural, gluten-free, non-G.M.O. and B.P.A.-free, just to name a few." Acquisitions also are a key component to Hain's success, particularly in the United States, where the company over the past year acquired two businesses: BluePrint and Ella's Kitchen. BluePrint makes juice that the company said is "a fresh, pressed raw and organic juice." Ella's Kitchen makes organic baby food with 80 products offered in the United Kingdom, the United States and Scandinavia. It is seen as a highgrowth complement to Hain's Earth's Best business. Both acquisitions are examples of Hain's strategy of looking at smaller scale transactions in the United States, a topic Mr. Simon expanded on at the Barclays Back-to-School Conference in Boston in early September. "There was a time we looked at doing a billion-dollar deal, went down the path, never got across the finish line because we ended up through our diligence saying it is not the right deal for us," he said. Instead, success has come from smaller transactions, suc h as Greek Gods, which was grown into a $100 million business from the $12 million business it was when Hain acquired it, and from Sensible Portions, which was $55 million when acquired but is well over $100 million today, Mr. Simon explained. He said the recently acquired BluePrint business fits the same mold and has the potential to grow from a $20 million business into one that generates $100 million. CP Chief executive officer - Top brands - Irwin D. Simon Celestial Seasonings Hain Pure Foods Garden of Eatin' Greek Gods Yogurt Plainville Farms Soy Dream Terra Chips 2013 fiscal year global sales - 98 \ November 2013 $1.7 billion Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - November 2013

Milling & Baking News Corporate Profiles - November 2013