Food Business News - May 17, 2016 - (Page 22)

Hain Celestial begins restructuring effort LAKE SUCCESS, N.Y. - The Hain Celestial Group, Inc. announced big changes to take effect in the new fiscal year as part of Project Terra, a strategic review the company launched in November. In addition to generating $100 million in global cost savings over the next two fiscal years, Hain Celestial is restructuring its business into five platforms, launching a venture unit and selling brands that no longer fit within its growth strategy. To oversee productivity savings identified under Project Terra, the company has promoted James R. Meiers, currently chief supply chain officer for Hain Celestial U.S., to the newly created position of chief operations officer. In this role, Mr. Meiers will have responsibility for achieving cost savings across the company's worldwide operations. Plans include optimizing plants, procurement and co-packers, and rationalizing the product portfolio. Beginning in the new fiscal year, the company will establish five strategic platforms within Hain Celestial U.S. with the purpose to drive accelerated net sales and margin growth. 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-forYou 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. Additionally, Hain Celestial is launching Cultivate Ventures, a venture unit with the purpose to strategically 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. Hain Celestial said it also has identified certain brands representing approximately $30 million in sales that it intends to sell as a group. "We are excited about the launch of our new platforms in fiscal year 2017, which are uniquely aligned with consumer eating habits and usage needs," said Irwin D. Simon, founder, president and chief executive officer. "We believe our platforms represent distinct opportunities for incremental growth and margin improvement. We expect this new approach will enable us to define more distinct channel Hain learns tough lesson with tea revamp LAKE SUCCESS, N.Y. - Efforts to revitalize the Celestial Seasonings tea brand with updated packaging failed to meet expectations of the Hain Celestial Group, Inc., which said May 4 it plans to return to its classic packaging for the upcoming tea season. "We invested in this year to drive consumer awareness of our new Celestial Seasonings package with ... shelf signage in store, shopper marketing program, social media and reduced pricing," said John Carroll, executive vice-president and chief executive officer of Hain Celestial North America, during a May 4 conference call with financial analysts. "Response to all this activity, quite frankly, was disappointing as Celestial 22 FOODBUSINESS NEWS ® Seasonings' bagged tea dollars sales trends did not improve in Q3. Our research and consumer contacts told us that our core consumers were confused by our new package and in some instances chose another brand of tea." Hain Celestial had redesigned the packaging a year ago to resonate with millennials, who are "big tea users, " said Irwin Simon, founder, president and c.e.o. of the Hain Celestial Group. As he explained during a presentation last September, "I think they looked at Celestial maybe as their father's Oldsmobile." However, the contemporized tea packaging failed to appeal to new and core consumers, prompting a decline in sales for the brand during the recent quarter. "We will transition to the classic package on shelf by September and reclaim our lapsed users with an impactful tea season support program," Mr. Carroll said. "We are excited about this decision because we believe it will help us recharge our Celestial Seasonings business." Added Mr. Simon: "Just getting back to flat on tea is a big move in our growth, and we will invest in that, and tea is a big category, an exciting category for us." But restoring growth in the tea business is more than just a simple packaging swap, Mr. Simon said. "Package is just the starting point," he said. "It's reminding people why they buy Celestial tea, the strong emotional relationship they have with the brand. This is not just another brand of tea. When we talked to people about the package and the brand, they told us stories about the brand. How it was intertwined in their lives that could bring you to tears. We need to make sure that we get the package right, take that out of the problem and then, from there, market on top of it." FBN May 17, 2016

Table of Contents for the Digital Edition of Food Business News - May 17, 2016

Food Business News - May 17, 2016
Dean Foods diversifying with Friendly’s acquisition
Nutrition point of reference
Dairy Business News - Hydrocolloids – It’s all about the gel
Table of Contents
Web Contents
Editorial - Investors view food production as ripe for disruption
F.D.A. adjusts course on ‘healthy’ labeling
Doug Gillespie to lead Harvest Hill Beverage Co.
Bunge launches non-G.M.O. corn product line
JAB to acquire Krispy Kreme for $1.35 billion
CAVU Venture Partners: Building and creating winners
Hain Celestial begins restructuring effort
Hain learns tough lesson with tea revamp
Pilgrim’s Pride to enter organic chicken category
Green Giant brings giant boost to B&G Foods
Cott making leadership changes in North America and U.K.
Market Insight - Where’s the sugar?
Ingredient Trends - Flavor innovation energizes sports nutrition category
Ingredient Innovations - Ancient grains rising in product development
New Food Products
Ingredient Market Trends - U.S.D.A. issues unexpectedly bullish outlook for soybeans
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - May 17, 2016