Dive Brief:
- Hain Celestial is selling its North American snacks business, including Garden Veggie Snacks, Terra chips, and Garden of Eatin’, to Canadian snacks manufacturer Snackruptors for $115 million.
- The sale, set to close by the end of the month, will streamline Hain’s North American portfolio, focusing on core categories and markets with higher margins and cash flow to drive growth. Hain will keep Celestial Seasonings teas, Greek Gods yogurt, Spectrum Organic culinary oils, and Earth’s Best Organic baby and kids foods.
- CEO Alison Lewis, who took over the role permanently in December, aims to reverse Hain’s sales decline by shedding unprofitable SKUs and exiting businesses where they lack a competitive edge.
Dive Insight:
Hain’s growth was fueled by numerous acquisitions, resulting in a diverse portfolio of brands across 40 categories without clear coherence.
By selling its snacks business, Hain aims to strengthen its financial position and better compete against larger food companies amidst changing consumer preferences.
CEO Lewis sees the sale as a strategic move to focus on key markets and drive sustainable growth, especially amid competition in trendy health-conscious categories.
Despite challenges like inflation and competition, Hain’s decision to sell its snacks segment reflects a strategic shift towards reducing debt, improving margins, and creating shareholder value.
The sale of the North American snacks portfolio accounted for 22% of Hain’s $1.6 billion in net sales in fiscal 2025.
This sale may be the first of several for Hain, as the company explores options for its personal care segment and focuses on brands like Celestial Seasonings and its meal prep business.
While facing competition in the yogurt space, Hain’s Greek Gods brand remains popular, and the company’s focus on home cooking products presents growth opportunities.