Dive Brief:
- Hain Celestial hired a senior vice president of digital engagement and e-commerce to handle the company’s overall digital strategy and vision, including customer and commercial development and online media, according to Baking Business.
- Julie Bowerman brings 20 years of experience with Coca-Cola, where she most recently was global vice-president of omni shopper marketing and digital commerce. She was a senior media buyer and planner at J. Walter Thompson before that.
- “E-commerce and digital engagement of our consumers are critical elements of our growth strategy as our consumer base increasingly engages with brands and buys natural, organic and better-for-you products on-line,” Hain Celestial North America CEO Gary Tickle, chief executive officer said in Baking Business.
Dive Insight:
Hain Celestial has been under pressure from activist investors to make changes. Engaged Capital — which had played hardball to force board changes at Rent-A-Center — took a 9.9% stake in the organic and natural products company this summer to help reinvigorate top line growth and bring its margins more in line with its peers.
In response to this development, Hain restructured its 11-member board of directors and agreed to form a group of directors to examine strategic alternatives. Centerview Partners will reportedly help with this review, which could result in a full or partial sale of the company.
Hain Celestial has long been identified as a potential takeover target, but its erratic performance and the audit of its accounting discrepancies — the company announced in June it would not revise any of its previous financial statements — have cast doubt on its future.
Despite its struggles, Hain remains in a popular space. Consumer interest in natural and organic products shows no sign of abating. Founded in 1993, Hain has acquired more than 55 brands, including BluePrint juice, Celestial Seasonings teas and Garden of Eatin snacks. With a market cap of $4.5 billion, Hain would be an acquisition that many other much larger food and beverage manufacturers could easily digest.
But even if it's not potentially on the auction block, any food company wishing to elevate its profile above its competitors is advised to increase its online presence and enhance its digital strategy. A recent Tetra Pak report of consumer trends revealed that 95% of so-called "Super Leaders" — defined as influencers who interact with brands the most via social media — regularly write reviews and share opinions about products and services. They often have a dedicated following.
Strategies firms can use to directly and effectively connect with brand influencers include creating a story about the brand, practicing consistent and open communication that conveys authenticity, and developing more innovative and personalized packaging. Through her experience with Coca-Cola, Bowerman knows how to make more of this happen.
Besides Hain, Nestle, Danone and Whole Foods are among other recent activist investor targets. There is growing evidence that food manufacturers and the retailers will remain in the crosshairs of Wall Street investors eager to wring out costs from these staid companies, boost their slumping share prices, and pocket hundreds of millions of dollars for their efforts. The investor groups have been effective in forcing change. Nestle recently accelerated its buyback plans and increased its profit margin and growth targets. And the so-called "greedy bastards" who took a stake in Whole Foods helped push the chain toward its $13.7 billion sale to Amazon.