The firm, which will score another industry first this fall with the launch of the first refrigerated energy shots, said dairy-free products represented a big growth opportunity.
Speaking at the Barclays Back to School consumer conference in Boston last week, Hain Celestial president Irwin Simon said that Almond Dream frozen desserts had been “a big winner” while new lactose-free launch Coconut Dream had been a “runaway freight train” success story.
“If you look at the whole soymilk category, it was a big growth category, but we’ve seen great declines in soymilk… [but] there is major growth in coconut, almond and rice and we’re going to see a lot of other non-dairy products coming right behind this.”
He added: “We will very shortly launch an almond yogurt, a non-dairy yogurt through [the] Almond Dream [brand]. This will be skewed towards the consumer looking for a lot less dairy and the lactose intolerant."
Greek Gods yogurt could generate sales of $100m
Hain Celestial has a small but growing presence in the yogurt fixture following last year’s acquisition of the Greek Gods brand and the introduction of new infant yogurts under the Earth’s Best brand, said Simon.
“We acquired this company [3 Greek Gods in July 2010] that was doing about $12m in sales and now it is the number two Greek yogurt in the natural channel today and will probably be about a $45m company in a year.
“Our Greek yogurt is a higher fat yogurt, a higher protein yogurt with a lot less sugar. It’s showing great growth and I think it could double and triple and become a $100m business for us.”
Bucking the trend
While some of the biggest names in grocery had suffered volume declines in the US as consumers cut back and prices rose to offset higher commodity costs, Hain Celestial continued to generate double-digit top and bottom line growth, said Simon.
And much of this was coming from retailers and sales channels that were struggling to make headway over all, he said.
“We drove consumption across all channels. We’re growing across grocery chains we’re surprised we’re growing with because as a chain they are not growing.
“When we first started the company 80% of our products were sold through natural shops. Today 70% are going through mass market retailers.”
Organics one of the fastest growing areas
As for organics, he said. “I’ve got to tell you, I’m confused by the chairman of Nestlé saying there is not a demand for organics. Everything we see, besides gluten free, is that organics is one of our fastest growing industries.”
The firm, which has a leading position in the natural and organic products market with brands such as Celestial Seasonings, Garden of Eatin, Rice Dream and Linda McCartney, posted a 23% rise in sales to $1.13bn in the year to June 30. Net income was up 92% to $55m.