Celestial Seasonings Tea Announces New Products, Packaging and Advertising Campaign

Rhea-AI Summary

Hain Celestial Group (Nasdaq: HAIN) announced new innovations from its subsidiary, Celestial Seasonings, including expanded product lines, updated packaging, and a fresh advertising campaign. Notable offerings include an Energy Tea with 95 mg of caffeine, alongside new TeaWell blends targeting health benefits. These initiatives aim to attract coffee drinkers and expand market share. The new advertising campaign, 'Taste the World of Celestial Seasonings,' emphasizes the health benefits of tea. Early data indicates these innovations have successfully driven sales growth, with high repeat purchase rates for new products.

Positive

• New innovations driving market share growth.
• Energy Tea contains as much caffeine as coffee, attracting new consumers.
• 74% of green and black tea sales come from new consumers.
• TeaWell blends include health-focused ingredients and are marketed for wellness benefits.
• New advertising campaign effectively communicates health benefits.

Negative

• None.

BOULDER, Colo., Jan. 28, 2021 /PRNewswire/ -- Celestial Seasonings, the specialty tea brand and subsidiary of Hain Celestial Group (Nasdaq: HAIN), today announced several new innovations including expanded product lines, updated packaging and a fresh advertising campaign. These new initiatives are expanding the category by driving coffee drinkers to choose Celestial Seasonings tea, and driving market share growth on the brand.

Consumers are responding to new innovations such as an Energy Tea, which contains as much caffeine as a cup of coffee.

"COVID-19 has created long-term behavioral changes that will outlast the pandemic, and tea consumption is a big one," said Mark L. Schiller, president and chief executive officer of Hain Celestial Group. "Today, we're building on Celestial Seasonings' rich heritage by introducing new innovations to address market shifts and reach new consumers. We're proud to introduce our time-tested teas to those looking to lead healthier lives, establish rituals, and find more sources of comfort at home."

Consumers are responding positively to new innovations such as an Energy Tea, which contains as much caffeine as a cup of coffee (95 mg). The company's innovations have been highly incremental to the brand and category with 74% of green and black tea sales from consumers new to those segments and 18% of sales from trade-ups from lower-priced products. New product launches have boasted repeat rates that are 200% higher than similar, competitive launches.¹

Expansion of TeaWell Product Line

In October 2019, Celestial Seasonings launched TeaWell, a line of organic wellness teas that couples daily health benefits with delicious flavor. The company recently introduced four industry leading TeaWell blends, including Mood Tonic, Sleep (the first tea with melatonin sold in the U.S.), Laxative and Gut Health (featuring a blend of prebiotics, probiotics and fiber). These new teas with benefits complement the Daily Wellness Core TeaWell blends, which offer a multi-benefit blend of traditionally used herbs and botanicals to help support immune health, digestion, and mental vitality.

"Beyond the mental health benefits of sipping a warm cup of tea, many consumers choose tea for its health benefits," said Tim Collins, vice president and general manager at Celestial Seasonings. "We want to make sure we are delivering on this promise with products that go above and beyond in providing the benefits you'd find in your typical cup of tea."

New Advertising Campaign
Designed by Deutsch, "Taste the World of Celestial Seasonings" is a new ad campaign that illustrates the feel-good benefits of drinking tea in the morning, during the day and before bed. Three video vignettes focus on Celestial Seasonings Green Tea for energy, Vitamin C tea for immune support, and Sleepytime tea to wind down. Through whimsical imagery and narration, the campaign is designed to introduce hot tea as a healthy and flavorful choice.

"This campaign captures the essence of how Celestial Seasonings brings balance and benefits every day," said Melinda Goldstein, chief marketing officer at Hain Celestial. "Consumers looking to make meaningful and lasting lifestyle changes will find the best of both worlds in Celestial Seasonings tea: strong immune support combined with unparalleled flavor."

On-Trend Packaging and Pricing
In response to demographic shifts and changes in consumer behavior, Hain Celestial has also introduced optimally sized and priced packaging. This new, sample-sized packaging comes with five tea bags instead of the typical 20-pack unit, making it better suited for the two-thirds of U.S. households that are three people or less and providing a lower cost-barrier for consumers to try new flavors.

"With the introduction of 14 new tea blends and more on the way, we wanted to make it easy for consumers to try our products with low commitment," Collins added. "During this time, we've seen substantial increases in both trial and repeat rates, meaning that once consumers try Celestial Seasonings tea for the first time, many come back for more."

About Celestial Seasonings, Inc.
For 50 years, Celestial Seasonings, Inc. (a subsidiary of The Hain Celestial Group, Inc., Nasdaq: HAIN) has created delicious specialty teas that add magic to every moment. The brand currently offers more than 90 flavorful varieties of herbal, green, black, wellness, rooibos and chai teas. Each blend is expertly crafted by our Blendmaster from the finest herbs, teas, spices and botanicals, and is presented in packaging adorned with beautiful artwork and inspiring quotes. From calming and relaxing to refreshing and rejuvenating to everyday wellness support, there's a Celestial Seasonings® product for all the moods and moments of your day. Visit here for more information on Celestial Seasonings® or visit here to purchase Celestial Seasonings® products.

About The Hain Celestial Group, Inc.
The Hain Celestial Group, Inc. (Nasdaq: HAIN) is a leading organic and natural products company that has been committed to creating a healthier way of life since 1993. Headquartered in Lake Success, NY, with operations across North America, Europe, Asia and the Middle East, Hain represents more than 40 widely known and beloved brands in the health and wellness space, including Celestial Seasonings® tea, Terra® chips, The Greek Gods® yogurt, MaraNatha® nut butters, Garden of Eatin'® snacks and Alba Botanica® personal care products. Hain is committed to environmentally sustainable practices and is a proud partner of Folds of Honor, a 501C-3 national nonprofit dedicated to providing educational scholarships to the families of fallen and disabled American service members. For more information, visit http://www.hain.com.

Contacts:
Robin Shallow
Robin Communications
212/653-8741
Robin@robincomm.com

Allison Falkenberry
Robin Communications
646/345-1280
Allison@robincomm.com

¹ During a 19-week period ending 10/27/20

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SOURCE Hain Celestial Group

FAQ

What new products did Hain Celestial launch for Celestial Seasonings?

Hain Celestial launched new product lines including Energy Tea and several TeaWell blends targeting health benefits.

How is Hain Celestial expanding its market share?

Hain Celestial is expanding market share by attracting coffee drinkers to Celestial Seasonings tea through innovative products and health-focused marketing.

What are the key features of the new TeaWell blends?

The new TeaWell blends include benefits such as mood enhancement, sleep support with melatonin, and gut health support.

What advertising strategy is Hain Celestial employing?

Hain Celestial's new advertising campaign, 'Taste the World of Celestial Seasonings,' highlights the health benefits of tea.

How successful have the new product launches been for Hain Celestial?

New product launches have seen repeat purchase rates that are 200% higher than similar competitive launches.