Melville, NY-based Hain Celestial Group, a natural and organic foods company, has signed a deal to supply burger behemoth McDonald’s Corp with its Yves Veggie Cuisine’s meatless soy burgers for all of the 1,250 Canadian McDonald’s restaurants, under the McVeggie Burger name.
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Hain Celestial has also signed a non-binding letter of intent to form a joint venture with Barilla Alimentare SpA, the Italian pasta and baking company, to manufacture, market, and distribute Terra brand products throughout Europe.
Chairman and CEO Irwin D. Simon said: “Both of these partnerships will help bring new customers for our products, and drive sales for two of our great rocket brands, Yves and Terra. With the continued strong performance of our rocket brands and solid contributions from our Hain brands, Hain Celestial has the necessary components to deliver strong earnings growth for the coming fiscal year.”
The company added that its expectations for the FY 2003 are within the range of current consensus estimates. Its Rocket Brands, Yves Veggie Cuisine and Lima businesses should report double-digit growth. Celestial Seasonings should provide solid single digit growth.
Revenues are expected to range from US$450-US$470m, and earnings are expected to grow to between US$0.78 and US$0.84 per share.
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By GlobalDataHain Celestial said that the Q4 2002, ending 30 June 2002, will include a charge of about US$8-US$10m related to the discontinuation of the Celestial Seasonings supplements business and the non-renewal of its license for Weight Watchers dry and refrigerated products. It is expected the cash portion of the charge will approximate US$1m. Simon stated: “As we streamline our brands, SKU’s, and plants, we have made the decision to totally discontinue the supplements business which was a challenged category over the past few years. As for our Weight Watchers business, we have decided to grow those brands we own rather than license in the medically directed business, such as Estee, Alba and Featherweight.” Annual revenues of supplements and Weight Watchers approximated US$4m.
“I also welcome David Yale as president, snacks. Yale comes to us from Kraft where he was most recently executive VP, Kraft Foods, and GM of the planters division. He will bring focus to our snacks business, improving our value proposition for customers and helping us to realise our potential in the coming year,” said Simon.
