Dive Brief:
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In a new joint venture, the Hain Celestial Group has taken a 49% minority interest in Rosetto Foods, according to Food Business News.
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As part of the deal, Hain will license the intellectual property associated with its non-core Rosetto brand of frozen Italian foods. In its most recent earnings report, the Rosetto brand generated nearly $10 million in net sales.
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“Steve Sands and his team have an established track record with smaller better-for-you frozen food brands, with the right skill set to revive the Rosetto brand in a more meaningful way as part of their meal solutions offerings," Gary Tickle, CEO of Hain Celestial North America, told Food Business News.
Dive Insight:
On the heels of acquiring the Yorkshire Provender Limited in February and creating a strategic joint venture between Future Consumer Limited and Hain Tilda India Private Limited in January, Hain continues to change up its strategy in 2017. The company also launched an incubator called Cultivate Ventures, a strategic platform committed to lifestyle brands and smaller portfolio brands and concepts.
But all is not acquisitions and bright business horizons for Hain Celestial. The company continues to struggle with accounting irregularities, which led to a U.S. Securities and Exchange Commission investigation and a delisting notice from the Nasdaq Stock Market last summer. Last month, the company shuffled its executive team for the second time in three months, shifting top leadership to different positions.
However, the bad news on its accounting obviously hasn't stopped Hain Celestial's growth or business activity.
Before its financial troubles, the natural products company saw double-digit revenue growth for 20 consecutive quarters. Once the accounting issues were resolved, its stocks spiked by more than 13% in a single day. Some analysts predict Hain, which is a major supplier for Whole Foods, is ripe for acquisition.
It will be interesting to see if any major players begin courting this company, especially since these recent deals could only make it more attractive.