The Hain Celestial Group, Inc. (NASDAQ:HAIN) Q4 2023 Earnings Call Transcript

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For tea, we have, single-serve, and we actually have K-Cups for Celestial Seasonings, we don’t have as many of the flavors, as we would like. Although we did just launched the Peppermint K-Cup . We just had really great receptivity, this is going to be one that’s driving distribution reach. And we’re in the process of putting together that go-to-market model, to ensure that we’ve got right coverage to go after the right channels, but I feel very, very good about it and the opportunities in front of us, but won’t require a lot of food change or product change won’t require a lot of packaging change, it is very much around commercial execution.

Andrew Wolf: Great. Thank you.

Wendy Davidson: You bet.

Operator: Thank you. Our final question this morning comes from the line of John Baumgartner with Mizuho Securities. Please proceed with your question.

John Baumgartner: Good morning, thanks for the question. I wanted to ask, Wendy, just thinking about the demographics for this category you Hain’s fallback for a number of years has been this highly affluent consumer, more installation from elasticity in the economy, but you look at broader natural organic, category growth has slowed off a larger base, you’ve got private label coming into the category. You’ve got many larger CPGs, with larger economies of scale offering products at more competitive price points. And I’m curious, as you sort of think about the next couple of years in this business, where you want to grow, the channel you want to grow, the consumers you want to market to? I guess how do you think about the risk of sort of riding your — I guess your largest buying consumer, highest-intensity consumption consumer, even harder where they may hit a wall at some point, as opposed going down the demographic or it’s more middle-income households that opens up to more elasticity risk, but also a much broader addressable market as well?

Wendy Davidson: Yes, I think it’s a great question and certainly historically, Hain’s growth has been predicated on a highly affluent consumer who is shopping, largely in specialty retail. What we’re seeing, the dynamics changed in the last few years, is that our products and brands actually appeal to a wider consumer cohort then just that consumer and consumers are looking to buy the products in more places. So the two things that we need to do, is make them available in more places, than just traditional specialty retail. But we also need to make sure that we’ve got the right pack configuration, so that we meet the consumer’s price points, in those particular points of distribution. So it’s an opportunity, you can have and that’s the opportunity for Hain we are under indexed in lots of channels, and we are under-penetrated in a variety of categories, that’s the opportunity.

The great news is, that when we look at consumer appeal of our brands, there’s a love for the products. Greek Gods yogurt for instance, has almost a near cult following, and Terra Chips and Garden Veggie Straws. So there is an opportunity for us to make the brands that consumers love, available in more places at a pack type and a size that they that meets the needs in that particular occasion.

John Baumgartner: Okay. Thank you.

Wendy Davidson: You bet.

Operator: Thank you. That concludes our question-and-answer session. I will turn the floor back to Ms. Davidson for any final comments.

Wendy Davidson: Yes, I really want to thank everybody for the time today and for interest in last quarter. And I want to especially again thank Chris for his partnership and Alexis in all of her work and preparation as we go into these earnings calls. I very much look forward to seeing everybody on Investor Day, in a few weeks. And thank you again.

Operator: Thank you. This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.

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