Health and wellness company Hain Celestial is implementing category-wide SKU reductions, simplifying its operating footprint, and streamlining its co-manufacturing network as part of its multi-year transformation plan - Hain Reimagined.
The Cully & Sully parent is actively assessing and streamlining its brand portfolios and has removed 6% of its SKUs globally since July 2023, it said in a statement.
Currently, the reductions are split almost equally between its North America and International business units and include brands across the snacks, baby/kids, beverages, meal prep and personal care categories.
'Winning Portfolio Of Brands'
Wendy Davidson, president and CEO of Hain Celestial stated, "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."
"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."
Hain Celestial's personal care business, which includes hair care, skincare and sun care under the Alba Botanica, Jason, Live Clean and Avalon Organics brands, is witnessing the largest SKU removal.
As part of a comprehensive assessment, the company is removing 62% of underperforming SKUs in a phased manner across the portfolio as it seeks to focus on products that drive growth and margin expansion.
In the meal prep segment, it is streamlining its Linda McCartney Plant-Based (Meat Free) portfolio, which includes a focus on the frozen products sold in Europe and the UK.
In snacks, Hain Celestial recently announced the sale of the Thinsters cookie brand. The company is also adjusting its product assortment in the baby/kids and beverages categories.
Operating Footprint Simplification
Hain Celestial is also streamlining its operating footprint and leveraging synergies across the business to drive scale and focus on five core geographies: the US, Canada, UK, Ireland and Western Europe.
The company is consolidating its manufacturing footprint down to one facility for personal care and eliminating five co-manufacturers from the network.
It has reduced its distribution centre needs by two and removed a co-manufacturer from its network with the divestiture of Thinsters.
Elsewhere, the company consolidated its Yves Plant-Based (Meat Free) manufacturing plants in Canada in late 2023.
In April, Hain Celestial ceased all production and operations within its non-strategic joint venture in India, further streamlining its manufacturing footprint.
