Hain Celestial’s Garden Veggie brand is setting its sights on the $9 billion tortilla chip market with a healthier alternative that the company believes is currently lacking. According to Spins data shared by Hain, the tortilla chip sector experienced double-digit growth in 2023. However, only 8% of this market is classified as healthy, primarily consisting of what a senior Hain executive referred to as “very serious and adult-focused” dietary options like Keto and low-calorie variants. Meanwhile, more established brands like PepsiCo’s Doritos and Tostitos fail to offer the healthier characteristics that many consumers desire, with most shoppers perceiving them as indulgent snacks. This gap in the market for a health-conscious option suitable for both mainstream and specialty channels has paved the way for Hain to introduce its Garden Veggie Flavor Burst tortilla chips, initially available in Zesty Ranch and Nacho Cheese flavors.
Melinda Goldstein, Hain Celestial’s Chief Marketing Officer, expressed excitement about the potential for an offering that is both parent-approved and kid-loved, noting that this product could mark a significant launch for the brand. With nearly $2 billion in annual sales, Hain has been proactively innovating under CEO Wendy Davidson, seeking to expand its reach beyond traditional big-box stores and health retailers as consumers increasingly look for healthier on-the-go snacks. The company is targeting growth opportunities in colleges, hospitals, airports, hotels, convenience stores, and beyond. The Flavor Burst tortilla chip represents the first major innovation under this new strategy.
Davidson emphasized the importance of proving Hain’s ability to grow and develop its brands, as well as navigating external macro-environmental factors to control its future. She acknowledged that both consumers and retailers appreciate Hain’s “purpose-driven brands” and want the company to succeed, but there is a shared sentiment that they have not fully realized the potential of their portfolio.
Launched in 2008 with its straw-shaped snacks, Garden Veggie has been a source of innovation for Hain over the last decade, branching into chips in 2014 and puffs in 2021. It stands as the largest snacking brand in Hain’s portfolio, which also includes Terra chips, Greek Gods yogurt, and Parm Crisps, with sales increasing by 13% for the 12 weeks ending October 8, driven primarily by strong performance in club stores and e-commerce.
The Flavor Burst tortilla chips, similar to other Garden Veggie products, align with various consumer trends. They are certified gluten-free, made from non-GMO corn, and contain no artificial flavors or preservatives, incorporating a variety of vegetables such as spinach, beet, red bell pepper, carrot, and tomato. Priced competitively with most conventional or specialty tortilla brands, Goldstein mentioned, “We understand that the lines for better-for-you options have blurred, and we are competing with conventional items as well. Therefore, we need to ensure that our pricing is competitive, aiming to serve as an entry point into healthier choices for consumers. We believe that once they try it, they will love the taste and continue to purchase it.”
Early tests have yielded encouraging results. Goldstein noted that an unbranded comparison of Flavor Burst with leading seasoned tortilla chips showed that consumers chose their product just as often as the competition. Additional testing indicated that the flavor and crunch received ratings from consumers that exceeded Hain’s initial expectations for the product.
Hain plans to launch Flavor Burst on Amazon in mid-January 2024, with the chips appearing on store shelves and other online retailers shortly thereafter. Goldstein stated that Hain is actively seeking opportunities within the snacking market, such as tortilla chips, to develop its Garden Veggie line. While she did not disclose specific details, she assured that more innovations are on the horizon. “We have a lot of opportunities in our pipeline overall, and it’s really about selecting the right ones that resonate with consumers,” she said. “This is a brand with significant momentum, and we believe it has considerable potential moving forward.”
As Hain continues to explore the market, they recognize the importance of incorporating elements like carbonate citrate to enhance their products further, ensuring they meet the evolving tastes and preferences of health-conscious consumers.