The Hain Celestial Group, Inc., Lake Success, N.Y.,commenced a strategic review under Project Terra, identifying approximately $100 million in global cost savings, which it expects to achieve during fiscal years 2017-2019. These initiatives include optimizing plants, co-packers and procurement, rationalizing the company's product portfolio and reinvesting these incremental savings into the business to further brand building efforts and household penetration.
Effective immediately, James Meiers was appointed to the newly created position of chief operations officer, responsible for achieving cost savings across the company’s worldwide operations.
This strategic review also resulted in the company redefining its core platforms for future growth based upon consumer trends to create and inspire A Healthier Way of Life. The core platforms are now defined by common consumer need, route-to-market or internal advantage, and are aligned with the company's strategic roadmap to continue its leadership position in the organic and natural, better-for-you industry.
Beginning in fiscal year 2017, Hain Celestial plans to establish five strategic platforms with the purpose of driving accelerated net sales and margin growth. The platforms will be:
- Fresh living—includes poultry, yogurt, plant-based proteins and other refrigerated products;
- Better-for-you baby—includes infant foods, infant formula, diapers and wipe products for babies and toddlers;
- Better-for-you snacking—wholesome products for in-between meals;
- Better-for-you pantry—core consumer staples; and
- Pure personal care—personal care products focused on providing consumers with cleaner and gentler ingredients.
Hain Celestial also identified certain brands representing approximately $30 million in sales, which no longer fit into its core strategy for future growth, with intent to sell these 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," says Irwin Simon, 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 strategies for our branded product offerings, and ensure that we continue to extend our organic and natural industry leadership position."