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Industry NewsHain Celestial cutting SKUs globally

Hain Celestial cutting SKUs globally

The Hain Celestial Group says it plans to reduce the number of SKUs across its portfolio.

Food product categories most affected by the program include meal preparation, baby/children’s, beverages and snacks.

In meal prep, the company says it’s reducing the SKUs in its Linda McCartney plant-based meat line of products. In the baby/children’s category and beverages, the company said it is conducting ongoing brand maintenance and in snacks the company sold its Thinsters brand in April.

Hain Celestial said it plans to continue to reshape its manufacturing footprint to improve efficiencies. The Thinsters sale in April allowed the company to reduce its distribution centre needs by two centres and remove a co-manufacturer from its network. In Meal Prep, Hain consolidated its Yves plant-based manufacturing plants in Canada and ceased all production and operations within its non-strategic joint venture in India.

Since July 2023, the company has removed 6 per cent 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 across the Snacks, Baby/Kids, Beverages, Meal Prep 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 products. As part of a comprehensive assessment, Hain is removing 62 per cent 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.

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