Irwin Simon Believes His Consumers Are Smart

The following video segment is part of a full interview, in which The Motley Fool's Brendan Byrnes sits down with Irwin Simon, the founder and CEO of Hain Celestial (NASDAQ: HAIN  ) , to take a closer look at the better-for-you food revolution. In this segment, they discuss how the global market for organic food products continues to grow despite the current world economy.

A transcript follows the video.

The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Brendan Byrnes: How often do you worry about things that are kind of out of your control, say the macro economy? Some think that natural, organic foods may be a little bit more expensive than your cheaper, just off-the-shelf processed foods -- maybe in a bad economy, which we're seeing now especially in Europe, you see customers potentially run from them. But Hain continues to do well, so how much does the macro economy worry you, and how much are you kind of insulated to that based on your brands? 

Irwin Simon: So, number one, I always try and deal with things that I've got some control over, unless I run for the president of the United States, and I wasn't born in -- I was born in Canada. I am a U.S. citizen now. That's what I cannot have control over. So I don't worry about that. and I come back and say this -- here, listen, in 2008, 2009, we lived through some tough times, and we saw where consumers ran to the other side and were buying private label or buying protein that was conventional chicken, or buying not natural and organic. 

When the economy did improve in 2010, we really saw consumers come back. But you know what's happening out there today, there is just so much information continuously coming out about how eating healthy, how important it is, how it's not a fad, how it's not a trend, what process ...

Byrnes: Do you think customers are more willing to pay up?

Simon: Absolutely. And you know what? It's not paying up that much. It's 10, 15%. I was watching today, and I guess there's in The Wall Street Journal today, or over the weekend, it was about eating out of the home. We're eating so much more at home today, and there's so much information that comes out why it's important to eat at home as a family and what it does for families, and if you have one or two meals at home where your children will not have drug problems or alcohol problems and that. Cooking at home is so much more convenient and cheaper than that, if you're able to do it. 

Buying natural, organic foods today -- our foods today are ... there are 370 Whole Foods going to a thousand. Our products are available in Wal-Mart, [Amazon.com], Kroger, Babies and Toys R Us, Fareway, where they weren't five years ago. Canada today, Loblaw, Sobeys, Metro, Target opening up. In Europe, throughout Europe, so it's just more and more distribution out there. 

But the more important is how educated consumers are, and it's interesting, because if I asked you what you eat today, you're educated about ingredients. You just don't eat anything, and it's funny because I love going to stores and looking at carts. And there are always healthy products in carts today, and we're educated about eating healthy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2362072, ~/Articles/ArticleHandler.aspx, 10/20/2014 1:13:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 16,380.41 263.17 1.63%
S&P 500 1,886.76 24.00 1.29%
NASD 4,258.44 41.05 0.97%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/17/2014 3:59 PM
HAIN $100.23 Up +1.54 +1.56%
Hain Celestial CAPS Rating: *****

Advertisement