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Hain Celestial consolidates operating footprint, pares down portfolio

Company plans to reduce its global portfolio over the next two years
Jillian Morgan, female, digital editor for Canadian Grocer
hain celestial personal care
Hain is removing 62% of underperforming SKUs across its personal care portfolio.

Hain Celestial Group is consolidating its manufacturing footprint and reducing its portfolio assortment as part of a company-wide realignment.

The company said the move – part of its “Hain Reimagined” strategy – will unlock savings, generate operating cash flow to pay down debt and drive gross margin expansion.

Since last July, Hain has removed 6% of its SKUs globally. More cuts are expected over the next two years, primarily in the personal care category.

Affected products include hair care, skin care and sun care under the Alba Botanica, Jason, Live Clean and Avalon Organics brands. Hain is removing 62% of underperforming SKUs in the portfolio.

In meal prep, the company is streamlining its Linda McCartney plant-based portfolio, with a focus on the frozen portfolio sold in Europe and the U.K.

In the baby/kids and beverages categories, the company said it’s adjusting its portfolios as part of ongoing brand maintenance.

Hain previously announced the sale of the Thinsters cookie brand in April. This reduced Hain’s distribution centre needs by two and eliminated a co-manufacturer from its network.

As part of its plan to streamline its operating footprint, Hain is also consolidating its personal care manufacturing footprint down to one facility. The decision will see five co-manufacturers eliminated from its network. A phased approach is underway and expected to wrap up in summer or early fall.

Hain consolidated its Yves plant-based manufacturing plants in Canada in late fiscal 2023. 

And in April, the company ceased all production and operations within its non-strategic joint venture in India. Hain said it will continue to supply products in the IMEA region through the International operating segment.

“This critical work delivers on the commitments we outlined in the focus pillar of our Hain Reimagined strategy to design a winning portfolio of brands across five categories, and to materially simplify our footprint and leverage scale and synergies across our five core geographies," said Wendy Davidson, Hain Celestial president and CEO, in a release. "These actions strengthen our focus on driving a core, hardworking portfolio of brands that produce stronger velocities and remove operational complexity from our supply chain to drive margin expansion."

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