View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 8, 2019

Hain Celestial sells US brands Arrowhead Mills, SunSpire to Hometown Food Company

US food group Hain Celestial has sold two domestic brands to the private-equity-backed Hometown Food Company.

By Dean Best

US food group Hain Celestial has sold domestic brands Arrowhead Mills and SunSpire to the private-equity-backed Hometown Food Company.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

Baking-to-breakfast brand Arrowhead Mills and SunSpire chocolates become the latest disposals made in the US by Hain Celestial, which is looking to accelerate sales from brands that stay within the business and improve the company’s profitability.

Mark Schiller, Hain Celestial’s president and CEO, said the “strategic divestitures” of the brands showed the company’s “consistent execution of our stated transformational plan to reduce complexity and simplify the brand portfolio”.

In the face of growing competition in the US, Hain Celestial has, in recent years, increasingly talked of a need to “simplify” its portfolio.

Those moves were started under founder – and now former CEO – Irwin Simon in 2016. Last summer, Simon stepped down as CEO, with Schiller – a former PepsiCo and Pinnacle Foods executive – joining last November.

Schiller has continued to trim the Hain portfolio, with a focus on profitable growth. And, as well as pruning SKUs, the company has offloaded assets, selling its meats division in February and finding a buyer for a tofu business in May. Last month, the company also agreed to sell Tilda to Spain-based Ebro Foods.

Speaking today (8 October), Schiller said: “We believe the Arrowhead Mills and SunSpire brands will thrive under new ownership as we focus our future initiatives and investments on areas of our business that better leverage our core competencies to improve our margins, profitability and cash flow generation.”

Last week, it was reported in the UK Hain Daniels, the UK-based arm of Hain Celestial, is being eyed by a major private-equity investor in the food industry.

Private-equity house Brynwood Partners created Hometown Food Company last year to house the assets it bought from local food business J.M. Smucker.

At the time, Henk Hartong, the chairman and CEO of Brynwood Partners, said the company would “aggressively” look for acquisitions to add to the business. It has agreed to pay a combined US$15m for Arrowhead Mills and SunSpire. The deal includes a manufacturing plant in Hereford in Texas.

Hartong said today: “This acquisition strengthens our industry position by adding improved capabilities in the better-for-you space that we plan to extend into our other categories.”

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food