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The Hain Celestial Group has unveiled a series of strategic measures aimed at advancing the 'Focus' pillar of its Hain Reimagined business strategy. These initiatives include significant SKU reductions across categories, consolidation of manufacturing operations and optimisation of its co-manufacturing network on a global scale. Wendy Davidson, president and CEO of Hain Celestial, noted the importance of these actions in aligning with the company's strategic vision.
"This critical work delivers on the commitments we outlined in the Focus pillar of our Hain Reimagined strategy," she said. "These actions strengthen our focus on driving a core, hardworking portfolio of brands while removing operational complexity to enhance our margin expansion."
The company's efforts to streamline its brand portfolio involve a comprehensive assessment, resulting in a global reduction of 6% of its SKUs since July 2023, with plans for further reductions in the coming years. Notably, within the personal care segment, Hain has undertaken the removal of 62% of underperforming SKUs, enabling a sharper focus on high-velocity products. In addition to SKU reductions, Hain is simplifying its operating footprint by consolidating manufacturing facilities and optimising its supply chain. This includes consolidating its personal care manufacturing to a single facility, eliminating five co-manufacturers from the network, and reducing distribution centre needs following the divestiture of the Thinsters cookie brand in the snacks business in April. Further insights into these endeavours will be unveiled during the Q3 2024 earnings call on 8 May.
