Zacks Analyst Interview Highlights: Hain Celestial, Hershey Foods, Dean Foods and Sara Lee

Business Wire, Jan 21, 2008

CHICAGO -- Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Steven Ralston, who discusses Hain Celestial (Nasdaq: HAIN), Hershey Foods (NYSE: HSY), Dean Foods (NYSE: DF) and Sara Lee (NYSE: SLE).

A synopsis of today's Analyst Interview is presented below. The full article can be read at www.zacks.com.

Did 2007 progress as you had envisioned, or did you find yourself making adjustments to your estimates?

Earnings growth in the food, beverage, tobacco, household products and cosmetics industries are expected to be up modestly in the mid- to high-single digit range. New product introductions bolstered volume growth. Low-single digit sales growth continued and price increases were accepted by the consumer. Hain Celestial (Nasdaq: HAIN) has been the most successful company that I follow in implementing price increases starting in 2004 with a 4% price increase and the company continues to raise prices annually by 3% to 4%. Hain is rated a Buy.

At many companies, productivity programs are offsetting most of the negative effects of cost inflation. The exception continues to be dairy costs. Corn is being used to manufacture ethanol, which in turn has caused a rise in the feed costs for cattle and dairy cows, and as a result, raw milk prices have increased. This has caused earnings disappointments in two of my companies: Hershey Foods (NYSE: HSY) and Dean Foods (NYSE: DF), which are heavily exposed to milk costs.

What company is at the top of your Buy list at this time?

I like Sara Lee (NYSE: SLE) at current levels. Management announced a five-year Transformation Plan in February 2005. Sara Lee was going to and has divested approximately 40% of the then existing portfolio, including Branded Apparel, European apparel and European meats business. As a result, the company's portfolio has become focused on food, beverage, and household products. Proceeds from the disposals were used to fund investments in other growth areas and strengthen the company's financial position.

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