Hain Celestial
Headquarters
United StatesType of ownership
PublicEstimated percentage of Hain Celestial's global F&B sales from BMS
3%Estimated percentage of Hain Celestial's global baby food sales from BMS
10%Countries covered in country studies
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Score 2024
Score
Score
Important:
The research findings regarding companies’ performance in this Index are based on information shared by companies or gathered by service providers, in addition to information that is available in the public domain.
The level of detail and comprehensiveness of information shared by companies and gathered through external service providers varied. In the case of limited or no engagement by companies, this Index may not represent the full extent of their efforts. Similarly, in the case of limited data collected by service providers, the findings of this Index may not provide a comprehensive representation of company practices.
ATNI’s research and Indexes do not assess compliance with local regulations or laws, but rather assess private sector performance against international standards and guidance.
BMS Country Studies
Score
The Country Studies component of the BMS and CF Marketing Indexes 2024 evaluates the extent to which a company’s marketing practices align with specific provisions of the WHO Code (not against local Code-related regulations). The main marketing channels assessed in the Country Studies for the BMS and CF Marketing Indexes 2024 are online points-of-sale, traditional and online media outlets, and product labels which were all assessed according to the NetCode protocol. Hain Celestial sells BMS products in one (the US) of the five countries selected for the assessment, which represents 100% of Hain Celestial’s estimated global BMS sales. The Country Studies results for Hain Celestial are summarized below for the US across each marketing channel.
Country Studies overview
| Hain Celestial | Country assessments | BMS market | |||
|---|---|---|---|---|---|
| Total incidences of non-compliance across online, traditional media, and product labels | Number of product labels assessed | Company brands found | BMS market share | Proportion of Hain Celestial's global BMS sales | |
| CHINA | N/A | N/A | N/A | N/A | N/A |
| GERMANY | N/A | N/A | N/A | N/A | N/A |
| INDONESIA | N/A | N/A | N/A | N/A | N/A |
| US | 5 | 5 | Earth's Best | <5% | 100% |
| VIET NAM | N/A | N/A | N/A | N/A | N/A |
(0 incidences of Code non-compliance corresponding to a country score of 100%)
(>0-10 incidences of Code non-compliance corresponding to a country score of 66%)
(>10-20 incidences of Code non-compliance corresponding to a country score of 33%)
(> 20 incidences of Code non-compliance corresponding to a country score of 0%)
• The only company that achieved an average score of 66% for the BMS assessment was Hain Celestial, based on assessing the company's performance in the US exclusively (which accounts for 100% of the company’s BMS sales), where a total of five incidences of non-compliance were observed on the five products assessed. No non-compliant observations were found online or traditional media during the time of research. While all of the five product labels assessed contained at least one incidence of non-compliance. It's important to highlight that Hain Celestial holds a small share of the US BMS market, accounting for less than 5%, which could impact on its overall score.
Observed incidences of non-compliance with the Code per country
Main in-country findings
The total number of non-compliant marketing practices found for Hain Celestial in the US was five, all from inappropriate product labels. While no incidences of non-compliance were observed on online media outlets and traditional media (during the research period the channels were monitored) all the five product labels assessed included an average of ten observations of non-compliance each, making Hain Celestial the company with the highest average number of incidences of non-compliance per label. The incidences were concerning infant formula (four products) and growing-up milk (one product).
Online findings
• No point-of-sale promotions on online retailer platforms or online advertisements on local websites and social media channels were found of Hain celestial's BMS products sold in the US in the eight-week period the channels were monitored.
Traditional media findings
• No traditional advertisements (TV, Radio, or print) were found of Hain celestial's BMS products sold in the US in the six-month period the channels were monitored.
BMS product label
• The number of Hain Celestial product labels assessed in the US was five. For all Hain Celestial products assessed, at least one incident of Code non-compliance was observed, with an average of ten incidences of non-compliance per product label.
• All labels assessed included nutritional, health, and marketing claims. None of the products included a statement on the importance of breastfeeding in the first six months of life and continued breastfeeding for up to two years or beyond, which is stipulated in the Code. Other types of non-compliance with the Code include the ‘idealization’ of the BMS product and endorsement or anything that may be construed as an endorsement by a professional or other body. Further, for two products with clear images the product label contains text that may discourage or undermine breastfeeding, by making a comparison to breastmilk, or suggesting that the product is nearly equivalent or superior to breastmilk. Compared to other companies assessed, Hain Celestial’s labels were also missing clear instructions to ensure that infants receive fresh feed to minimize any contamination risks. Other less common observations classified as non-compliant with the Code included absence of a clearly legible statement that the product should be used only on the advice of a health worker, and lack of a warning against the health hazards of inappropriate preparation and usage.
• It is worth noting that ATNI did not have the resources to collect products from the different markets and take pictures of their labels. In this iteration, ATNI’s research was based on product label images from an external provider. For some products, images were not clear enough or did not show all parts of the package, thus ATNI asked the respective companies to provide images of the labels. As Hain Celestial did not respond to ATNI during the verification phase, the company had not provided images of product labels as requested by ATNI. Therefore, incomplete assessments remained for a total of two products. Since at least one incidence of non-compliance was identified from the available images, these labels were counted as a non-compliant observation.
Recommendations
• Given that each of the labels assessed in the US were found to be non-compliant with the Code requirements in at least one aspect, Hain Celestial is encouraged to focus on improving labeling practices across to ensure full compliance with the Code and all subsequent relevant resolutions, including the guidance supported by WHA resolution 69.9. This includes ensuring that product labels clearly indicate the appropriate age range for consumption, instructions for powder formula preparation, and statements promoting the importance of exclusive breastfeeding for the first six months and continued breastfeeding up to two years or beyond, and that labels do not include health or nutrition claims, except if specifically provided for in national legislation.
• Hain Celestial is strongly encouraged to cooperate fully with any future independent third-party assessments by providing clear and comprehensive product label images. Incomplete assessments can lead to inaccurate evaluations and hinder efforts to address incidences of non-compliance effectively.
• ATNI is calling on Hain Celestial to review all incidences of non-compliance identified across all product labels, which were shared in detail with the company, and to take corrective action.
BMS Corporate Profile
Score
The Corporate Profile component of the BMS and CF Marketing Indexes 2024 evaluates the extent to which a company’s policies align with various provisions of the Code, the effectiveness of its related management systems as well as the company’s level of disclosure on commitments relating to BMS marketing. Hain Celestial’s BMS marketing commitments were assessed across 11 topics that cover different aspects of the Code on which the company scored an average of 1,2%. This score is equivalent to the company’s initial overall Corporate Profile score before a geographic penalty (if applicable) is applied to each BMS product type. The final Corporate Profile score considers how the company’s BMS marketing commitments are applied for the different BMS product types sold by the company, and across different markets. As Hain Celestial sells infant formula, follow-up formula, and growing-up milks, the company’s application of BMS commitments was evaluated for each product type, as shown in the next section on ‘Geographic application of BMS commitments by product type’. The scores and findings on each topic are described in further detail in the section below on ‘BMS Commitments by Topic’.
Geographic application by Hain Celestial of BMS commitments by product type
The table below shows the percentage of product sales where commitments are upheld and the geographic penalty applied to each type of BMS. The penalty ranges from 0% up to 90% depending on whether a company fully upholds its BMS marketing commitments in all or none of the countries in which it operates, respectively, where national Code regulations are absent or less stringent than the company’s policies and standards.
|
Corporate Profile score before penalty |
Product type |
Percentage of Hain Celestial’s global sales from markets where BMS commitments are upheld |
Geographic penalty applied |
Final Corporate Profile score |
|---|---|---|---|---|
| 1.2% |
Infant formula |
0% | 90% | 0.1% |
|
Follow-up formula |
0% | 90% | ||
|
Growing-up milk |
0% | 90% |
No information was found in the public domain nor shared by the company describing how BMS marketing commitments are upheld for each product type and in which markets. Therefore, the corresponding geographic penalty for each product type (infant formula, follow-up formula, and growing-up milk) is the maximum of 90% and the final Corporate Profile score is 0,12%.
Infant formula
The corresponding geographic penalty for this product type is the maximum of 90%.
Follow-up formula
The corresponding geographic penalty for this product type is the maximum of 90%.
Growing-up milk
The corresponding geographic penalty for this product type is the maximum of 90%.
ATNI calls on Hain Celestial to develop and/or publish a BMS marketing policy that fully aligns with the wording of the Code, in addition to upholding the relevant national regulations in the US. The policy should also cover all milks that are specifically marketed for feeding infants and young children from birth up to the age of three years, and it should be applied in all markets in which the company operates in.
Topics Overview
BMS commitments by topic
Most topics include assessments on both policy commitments and management systems, except for the topic on ‘Implementation and Monitoring’, which mostly considers management systems, and the topic ‘Overarching Commitments’, which considers policy commitments only. A separate topic assesses the level of disclosure and transparency practiced by companies on the different aspects of the Code.