Hain Celestial Interim CEO Alison Lewis is taking on the top position permanently as the organic and natural products maker looks to turn around its struggling business.
Lewis took over as CEO in May and has since focused on stabilizing sales, improving profitability, optimizing cash and deleveraging the company’s balance sheet. Hain’s better-for-you food and beverage portfolio includes Terra Chips, Celestial Seasonings teas and Greek Gods yogurt.
“We are pleased with the bold moves she has already taken to reduce costs, the turnaround agenda she has put in place designed to drive margins and growth, and her focus on progressing the strategic review,” Dawn Zier, Hain’s chair, said in a statement. “With Alison’s deep CPG expertise and track record of strong performance, we believe she is best equipped to create shareholder value and lead Hain as our next CEO.”
Lewis is the third CEO to run the New Jersey-based company in the last three years. Wendy Davidson was ousted in May after just over two years in the top role.
Despite playing in trendy categories such as gluten-free, high protein, GLP-1 friendly and clean label, Hain is facing mounting competition from General Mills, Nestlé and other companies that have launched better-for-you offerings of their own. At the same time, inflation, economic uncertainty and other headwinds have also weighed on its business.
Lewis announced plans to leave unprofitable or low-margin SKUs. The company is also working to simplify its food and beverage portfolio by exiting or selling businesses where it is “structurally disadvantaged” or it does “not have a right to win.”
In September, Lewis said the company hired an interim chief business officer to help with its cost reduction, as well as its streamlining and restructuring efforts.
Despite these actions, Hain continued to struggle during its most recent quarter ended Sept. 30. Net sales were $368 million, down 7% year-over-year, with a decline in snacks hurting its business.
