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**Hain Trades Chips for Collagen**

2h ago · 6 sources · earnings

Hain Celestial is done trying to win the snack aisle. After divesting its snacks business in February, including Garden Veggie Snacks, Terra chips and Garden of Eatin’, the company is pivoting its turnaround toward innovation-led growth in functional foods.

The financial reset is real. Three months after the sale, Hain posted $35 million in free cash flow and cut debt to below $145 million year-to-date in Q3. The top line still hurts. Revenue fell 13% to $338 million. Organic net sales declined 6%. Adjusted gross margin slipped 90 basis points to 21%.

So Hain is betting on new news. SKUs launched or relaunched in the last three years made up 12% of net sales in Q3, up 2.5 percentage points from a year ago. Celestial Seasonings is pushing into gut health and throat support, building on detox, energy and women’s wellness. Greek Gods rolled out a high-protein yogurt with 20 grams per serving. An international collagen jelly packs 10 grams of protein. Marketing investment is set to rise in North America and accelerate International over the next three years.

Why it matters. Hain is shrinking to grow. Snacks are out. Protein, gut health and functional benefits are in. The numbers show a company still stabilizing, but the mix is shifting toward innovation. If 12% is the starting point, the real question is how fast that share climbs. Functional is no longer a niche strategy. For Hain, it is the turnaround.

Key facts

  • Hain Celestial is shifting its turnaround strategy toward innovation-led growth focused on functional benefits after divesting its snacks business in February.
  • Hain Celestial divested its snacks segment, which included Garden Veggie Snacks, Terra chips and Garden of Eatin’ snacks, as part of portfolio simplification.
  • Three months after offloading its snacks business, Hain Celestial reported free cash flow of $35 million and debt falling below $145 million year-to-date in Q3.
  • In the third quarter, Hain Celestial's revenue fell 13% year over year to $338 million, while organic net sales declined 6% and adjusted gross margin dropped 90 basis points to 21%.
  • SKUs launched or relaunched in the last three years accounted for 12% of Hain Celestial’s net sales in Q3, up 2.5 percentage points from a year ago.
  • Celestial Seasonings is expanding into gut health and throat support, building on wellness launches in detox, energy and women’s wellness.
  • Hain launched a high-protein Greek Gods yogurt with 20 grams of protein per serving and is introducing a collagen jelly internationally with 10 grams of protein per serving.
  • Hain plans to increase marketing investment in North America and accelerate international marketing to support innovation over the next three years.
  • $35 million
  • below $145 million
  • 13%
  • $338 million
  • 6%
  • 90 basis points
  • 21%
  • 12%

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