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URL:  http://boards.fool.com/hi-blsh-i-include-hain-celestial-in-what-i-think-30306576.aspx

Subject:  Re: HAIN Date:  10/8/2012  11:48 AM
Author:  TMFGuardian Number:  33 of 74

Hi BLSH!

I include Hain Celestial in what I think of as the healthy/active lifestyle segment. Here, I'm referring to organic/healthy eating businesses such as HAIN and Whole Foods, wholesome eating (higher quality ingredients) companies such as Panera, and sporting/active lifestyle companies such as Under Armour and Nike.

I think people are becoming more aware of the importance of exercise and of what they eat, and are willing to pay more for products that will help them live a healthier life. This allows companies that meet these needs to charge a premium for their products, which can lead to higher profit margins. But it's not enough to simply offer a higher quality product; brands matter, especially when it comes to food. People want to be able to trust that a company will produce food that is safe and of consistent quality. And I think that is where Hain Celestial comes in. It's Earth's Best brand is building a strong reputation in the organic baby food market (My wife has our pantry filled with Earth's Best products for our daughters), and brands such as Greek Gods Yogurt, Garden of Eatin, and Terra Chips are other examples of Hain's strong position in the healthier eating segment.

As for whether HAIN is Tier 1, I typically prefer companies that grow mostly organically (no pun intended), rather than through acquisition. But having said that, growth through acquisition does tend to work better in the food industry, where the acquirer can often make a recently purchased brand more valuable by adding it to its larger and more efficient distribution network, as HAIN has often done.

Overall, HAIN has been a strong performer for Stock Advisor, and I expect it to continue to reward shareholders in the future.

Joe T
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