The Hain Celestial Group, Inc. (HAIN), Jamba, Inc. (JMBA): Is This Consumer Product Company an Investment Made in Heaven?

Jamba, Inc. (NASDAQ:JMBA) Juice has a competitive disadvantage because the juices are not organic. Prices are on the higher side for the smoothies and juices. The sandwiches and salads face stiff competition from fast-food restaurants which are adding healthier choices for customers.

Starbucks jumps into juicing

Hain isn’t the only one taking advantage of the focus on healthy food and beverages. Starbucks Corporation (NASDAQ:SBUX) acquired Evolution Fresh juice company for $30 million in 2011. Evolution Fresh juices are sold both in the Starbucks Corporation (NASDAQ:SBUX) outlets and in freestanding Evolution Fresh stores. The company achieved revenue of $3.7 billion in the third quarter of 2013, an improvement of 13% and operating income improved 25% to $615.2 The company has a presence in 61 countries.

Troy Alstead, chief financial officer stated, in a press release distributed July 25, 2013 discussing the third quarter results:

“Our ability to grow income at a pace that exceeds revenue growth clearly demonstrates the strategic synergies we generate across our global footprint, which combined with the diversity of our portfolio, enables consistent delivery of excellent results.”

A downside to Starbucks Corporation (NASDAQ:SBUX) is that sales from comparable stores have dropped from a growth rate of 8% in 2011 to 7% in 2012, overall, although stores in the China — Asia Pacific — regions saw double digit comparable sales growth.

The question for investors is whether Starbucks Corporation (NASDAQ:SBUX) can successfully promote another brand and open stores under the Evolution Juice brand. The coffee stores have a limited menu and a different customer base. Evolution Juice offers sandwiches, juices, smoothies and salads.

Should you invest in Hain Celestial Group?

Hain has a focused acquisition strategy not straying outside the organic product market. While the brands are different, the marketing strategies are not. For Hain, the outlook for further growth is heavenly and the company’s profits could be even juicier.

Dee Power has no position in any stocks mentioned. The Motley Fool recommends Hain Celestial and Starbucks. The Motley Fool owns shares of Hain Celestial and Starbucks. Dee is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Is This Consumer Product Company an Investment Made in Heaven? originally appeared on Fool.com is written by Dee Power.

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