The Hain Celestial Group has launched a new strategic platform Cultivate Ventures to invest in lifestyle brands, smaller portfolio brands and concepts as well as incubator opportunities.
The company said that the investments should benefit from the larger scale and leverage of its infrastructure and entrepreneurial roots.
Through the platform, Hain Celestial plans to incubate small acquisitions until they reach the scale for inclusion in its core platforms such as Fresh Living, Better-for-You Baby, Better-for-You Snacking, Better-for-You Pantry, and Pure Personal Care.
Hain Celestial president and chief executive officer said Irwin Simon: “Since Hain Celestial’s inception, we have invested in health and wellness brands and concepts, giving them the infrastructure to grow.
“We formed Cultivate Ventures to bring that legacy to our high potential brands, investing in teams with support and focus to help them thrive.”
Cultivate Ventures will utilize Hain Celestial’s resources, including marketing, sales and supply chain, to refresh and relaunch its brands.
Cultivate’s brands include BluePrint cold-pressed juice beverages, DeBoles whole wheat and gluten-free pastas, GG Unique Fiber crackers, Tilda basmati rice and other grain products, SunSpire confectionery snacking and baking products and Yves Veggie Cuisine vegetarian and vegan products.
The wholly-owned Cultivate brands earned a revenue of about $70m during the fiscal year 2016.
Hain Celestial will manage the new platform under the Rest of World segment along with Hain Celestial Canada and Hain Celestial Europe.
It expects Cultivate brands will need investment and be neutral in earnings contribution in fiscal year 2017.
The company plans to divest brands accounting for nearly $30m in net sales that no longer fit into its core strategy for future growth.
Cultivate Ventures and Hain Celestial Canada chief executive officer Beena Goldenberg said: “Cultivate will rely on key learnings from Hain Celestial’s history of growing acquisitions by offering smaller brands access to our unique sourcing opportunities, manufacturing facilities and best practices in marketing and distribution in the natural and organic industry.”
In September, it announced that all flavors of Dream non-dairy yogurt have earned verification from the Non-GMO Project.