UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: TMFGuardian Three stars, 500 posts Supernova Odyssey 1
Mission Team Member CAPS All Star SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 72  
Subject: Re: HAIN Date: 10/8/2012 11:48 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
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
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Feste Award Winner Announced!
Congrats to the Winner of the 2013 Feste Award!
Post of the Day:
Berkshire Hathaway

Why Should Berkshire Hathaway Survive?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement