Hain Celestial Set to Launch Fourth Distribution Center, Doubling U.S. Network Capacity

Rhea-AI Summary

Hain Celestial (NASDAQ: HAIN) is launching its fourth distribution center in Savannah, GA, completing a multi-year expansion project that doubles its U.S. network capacity. This strategic expansion, which began in spring 2023, follows recent openings in Chicago (December 2024) and adds to existing facilities in Southern California and Central Pennsylvania.

The enhanced distribution network is expected to deliver significant improvements, including: reaching over 90% of U.S. customers within 1-2 transit days (15% increase), reducing delivery route mileage by 66% (approximately 2.6 million miles annually), and achieving multimillion-dollar savings in fuel and maintenance costs.

All facilities are operated with third-party logistics companies, allowing for scalable space and throughput to meet varying customer demands. This expansion is part of the company's Hain Reimagined strategy, focusing on operational excellence and supply chain strengthening.

Positive

• Doubles U.S. distribution network capacity
• 15% increase in customer reach within 1-2 transit days (now >90%)
• 66% reduction in delivery route mileage, saving 2.6M miles annually
• Multimillion-dollar cost savings expected in fuel and maintenance

Negative

• None.

Insights

Supply Chain Analyst

Hain Celestial's distribution network expansion marks a pivotal transformation in its operational infrastructure, with multifaceted implications for its financial performance and market competitiveness. The strategic placement of four regional distribution centers creates a robust hub-and-spoke model that promises to deliver significant operational efficiencies.

The anticipated 66% reduction in delivery route mileage translates to approximately 2.6 million fewer miles annually, which has three key financial implications: 1) Direct cost savings through reduced fuel and maintenance expenses 2) Enhanced working capital efficiency through improved inventory turnover and reduced safety stock requirements 3) Increased market responsiveness, potentially leading to higher fill rates and customer satisfaction.

The partnership with third-party logistics providers is particularly shrewd, offering several advantages:

• Reduced capital expenditure requirements compared to owned facilities
• Scalable capacity that can flex with seasonal demand
• Lower fixed costs and improved operational flexibility
• Reduced operational complexity and management overhead

This infrastructure upgrade positions Hain more competitively in the rapidly growing better-for-you food segment, where speed-to-market and efficient distribution are important differentiators. The improved 1-2 day delivery capability to 90% of U.S. customers aligns with modern retail expectations and could strengthen relationships with key retail partners.

Global manufacturer's distribution network expansion project part of Hain Reimagined strategy enables increased customer responsiveness, enhanced speed to shelf, and reduced transportation costs

HOBOKEN, N.J., Feb. 4, 2025 /PRNewswire/ -- The Hain Celestial Group, Inc. (Nasdaq: HAIN), a leading global health and wellness company whose purpose is to inspire healthier living through better-for-you brands, is slated to bring online a new distribution center this month. This completes a multi-year expansion project designed to strengthen its customer relationships by improving service through faster delivery, increased product availability and lowered transportation costs, while simultaneously enhancing efficiencies by reducing delivery route mileage nationwide.

This month, the global manufacturer will begin distributing its U.S.-based better-for-you brands out of Savannah, Ga., marking its fourth regional distribution center. This expansion doubles Hain's U.S. network capacity and minimizes the distance it takes to deliver products by an anticipated 66% annually, ultimately allowing customers to get Hain's snacks, baby & kids food, beverages and meal prep products quicker and more efficiently.

"We're actively designing a more agile and robust distribution network to optimize our supply chain nationwide. By strategically expanding our network, we're significantly enhancing our ability to respond swiftly to market demands and deliver our products more effectively and efficiently to our customers," Hain Celestial Chief Supply Chain Officer Steve Golliher said. "We expect to see significant benefits from this approach, including faster delivery times, increased efficiencies and continued growth and innovation within our supply chain operations."

Upon completion, the company anticipates the project to result in:

• The ability to reach +90% of U.S. customers within 1-2 transit days, an increase of 15%.
• A reduction in delivery route mileage by approximately 66% – or roughly 2.6 million miles – annually.
• Multimillion-dollar savings by reducing costs in fuel and maintenance.

Historically, the company operated two distribution facilities in Southern California and Central Pennsylvania. In December 2024, it expanded to a third facility in Chicago, Ill. The fourth facility in Savannah, Ga enables a more geographic-centered, flexible distribution network by strategically positioning distribution centers across the U.S., ensuring efficient and timely delivery to meet customer needs. All four facilities are operated in conjunction with a third-party logistics company, allowing for scalable space and throughput to meet varying customer demands.

This strategic distribution transformation, which began in spring 2023, underscores Hain's commitment to operational excellence, and supports the Fuel and Build pillars of its Hain Reimagined business strategy by investing in operational efficiencies to strengthen its supply chain.

About The Hain Celestial Group

Hain Celestial Group is a leading health and wellness company whose purpose is to inspire healthier living for people, communities and the planet through better-for-you brands. For more than 30 years, Hain has intentionally focused on delivering nutrition and well-being that positively impacts today and tomorrow. Headquartered in Hoboken, N.J., Hain Celestial's products across snacks, baby/kids, beverages, meal preparation, and personal care, are marketed and sold in over 70 countries around the world. Our leading brands include Garden Veggie Snacks™, Terra® chips, Garden of Eatin'® snacks, Hartley's® jelly, Earth's Best® and Ella's Kitchen® baby and kids foods, Celestial Seasonings® teas, Joya® and Natumi® plant-based beverages, Greek Gods® yogurt, Cully & Sully®, Yorkshire Provender®, New Covent Garden® and Imagine® soups, Yves® and Linda McCartney's® (under license) meat-free, and Avalon Organics® personal care, among others. For more information, visit hain.com and LinkedIn.

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SOURCE The Hain Celestial Group

FAQ

How many distribution centers will HAIN operate after the Savannah facility launch in February 2025?

After the Savannah facility launch, HAIN will operate four distribution centers across the U.S., located in Southern California, Central Pennsylvania, Chicago, and Savannah, GA.

What percentage of delivery route mileage reduction does HAIN expect from its new distribution network?

HAIN expects to reduce its delivery route mileage by approximately 66%, equivalent to 2.6 million miles annually.

When did HAIN begin its strategic distribution transformation project?

HAIN began its strategic distribution transformation project in spring 2023.

What percentage of U.S. customers will HAIN reach within 1-2 transit days after the network expansion?

After the network expansion, HAIN will reach over 90% of U.S. customers within 1-2 transit days, representing a 15% increase.

How does HAIN operate its distribution facilities?

HAIN operates all four distribution facilities in conjunction with third-party logistics companies, allowing for scalable space and throughput to meet varying customer demands.