Hain Celestial Acquires Yves Veggie Cuisine

UNIONDALE, N.Y.--The Hain Celestial Group, based here, on June 11 acquired Yves Veggie Cuisine, a privately owned company based in Vancouver, B.C. "With this merger, we will establish Hain Celestial's Canadian headquarters in Vancouver and leverage Yves' presence in Canada to better recognize the potential of the Canadian market for all Hain Celestial products through both natural food and grocery channels," said Irwin Simon, chief executive officer of the Hain Celestial Group.

"This is a very positive move," said Roy Kingsmith, marketing director of Yves Veggie Cuisine. "It allows us to capitalize on synergies with respect to warehousing, freight, shipping and other basics, and it will also allow us to expand our profile and position within the natural foods category."

During year 2000, Yves revenues were Canadian $50 million, with 72 percent of sales volume generated from leading conventional grocers and mass-market retailers. The meat analog market is estimated at Canadian $1.8 billion per year and is expected to grow by approximately 25 to 30 percent annually, especially in the European and U.S. markets. These revenues and expected growth, along with Yves' presence in mainstream groceries and its 85 percent market share in Canada, are expected to benefit Hain by giving the brand more exposure. "I expect we will become more closely involved with some of the other Hain products, with respect to assisting in sales and marketing, specifically in Canada," Kingsmith said. "Hain has acquired Yves, but certainly the business mentality will be based on a partnership--how can we help them, how can they help us."

"Our partnership with Yves creates other important growth opportunities for the Hain Celestial Group," Simon said. "Yves is a proven leader in the rapidly growing category of meat and cheese alternatives. Together we will maximize distribution opportunities throughout North America for Yves."

Yves Potvin, founder and president of Yves Veggie Cuisine, will continue in a managerial role of Canadian operations, and he has joined the Hain board of directors. Kenneth Bolton, Yves' executive vice president and chief financial officer, will work with Hain to promote international distribution.

Yves Veggie Cuisine (www.yvesveggie.com) is a manufacturer and marketer of all-natural, soy-based meat analog products; its products will continue to be marketed under the Yves name. The company has approximately 250 employees and a state-of-the-art 53,000-square foot-manufacturing facility in Vancouver, which will remain intact. The Hain Celestial Group (www.hainfoodgroup.com) is a natural, specialty and snack food company.