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Hain Celestial To Consolidate Personal Care Manufacturing Footprint, Streamline Portfolio

Maker of Alba Botanica, Jason and Avalon Organics will move to one facility and eliminate five co-manufacturers.

Hain Celestial Group is consolidating its operating footprint, and streamlining its co-manufacturing network globally— a move that will impact its personal care brands unit that includes hair care, skin care and sun care under the Alba Botanica, Jason, Live Clean and Avalon Organics brands.

Within personal care, Hain will consolidate its manufacturing footprint down to one facility and eliminating five co-manufacturers from the network. This initiative will help to expand overall gross margins through improved capacity utilization and lower manufacturing costs. The phased approached is expected to be completed in late summer/early fall 2024.

Since July 2023, the company has removed 6% of its SKUs globally and is expected to increase that number over the next two years. Today, those reductions are split almost equally between North America and International and include brands and personal care categories.

The largest SKU reductions are occurring within Hain's personal care business, which includes hair care, skin care and sun care under the Alba Botanica, Jason, Live Clean and Avalon Organics brands. As part of a comprehensive assessment, Hain is removing 62% of underperforming SKUs in the portfolio, which will enable the team to prioritize products that have higher velocities to improve the portfolio's growth and margin expansion. This work is being executed in phases to ensure a smooth transition for customers.

Hain is also streamlining its operating footprint and leveraging synergies across the business to drive scale as the company focuses in five core geographies: the US, Canada, UK, Ireland and Western Europe.

“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. “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.”

As Hain is in the foundational year of its Hain Reimagined strategy, the company said it is continuing to identify opportunities to further simplify and streamline the business through optimizing its operating model, leveraging synergies and scale and continuing to focus on shaping a winning portfolio.  These efforts will unlock savings to further de-leverage the balance sheet and reinvest in brand building, channel expansion and innovation. Hain will share more details during the Q3 2024 earnings call on May 8, 2024.

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