Ella’s Kitchen sales hit by BBC Panorama babyfood pouches investigation

Sales have declined for the second year in a row at Ella’s Kitchen as parents steered clear of the category in the wake of the Panorama investigation into babyfood pouches last year.

The BBC programme exposed misleading health claims and high sugar levels across several brands.

Revenues at market leader Ella’s slipped by 5.6% to £81.3m in the year to 30 June 2025, newly filed accounts showed. UK sales at the brand decreased 4.8% to £65.1m, while overseas dropped 8.6% to £16.2m.

Alongside the impact from Panorama, revenues in FY25 were affected by a change by its owner Hain Celestial to direct service in Ireland, replacing the third-party distributor model.

Operating profits decreased 10.2% to £13.9m as a result of lower sales and increased costs.

Ella’s top line was already under pressure before the Panorama programme aired in May 2025 as it battled increased competition from own label and advice from government and the NHS not to start weaning until babies are at least six months old.

The 2023/24 financial year marked the first time the brand failed to record sales growth in 17 years.

Wolfgang Goldenitsch, head of Hain’s international division, said it was a challenging year for babyfood and one of transition for Ella’s as the business continued to evolve in response to market conditions and longer-term strategic priorities.

“Against this backdrop, we set out clear priorities for our next phase of growth,” he added.

Ella’s increased the recommended ages on its pouches from four months to six months and older in March 2025 to align with NHS and World Health Organization guidelines.

It also has plans to reformulate parts of the range.

“These changes are designed to give parents greater clarity and confidence, while supporting higher standards across the category,” Goldenitsch said.

Hain is currently in the midst of a strategic review of its international division, with Ella’s widely expected by dealmakers in the City to be sold off. The process remains in its early stages.

“Looking ahead, Ella’s Kitchen is well positioned for the future, with exciting new product ranges and a continued focus on nutrition-led innovation and reformulation,” Goldenitsch added. “We continue to be the most popular brand in our category in the UK & Ireland, and remain fully committed to supporting families with natural, convenient food little ones love.”

Babyfood overall experienced a 3.5% fall in retail sales and a 4.7% drop in volumes last year [NIQ 52 w/e 6 September 2025], with the brands named in the Panorama show underperforming the wider category, according to the most recent report in The Grocer.

Hain Celestial-owned Ella’s registered the biggest drop in the period – with value down 9.3% on a 10.3% fall in volumes – after its Bananas & Apples pouch was found to contain most sugar (19.6g) of all those analysed by the BBC.

Ella’s Kitchen recertified as a B Corp for the third time in FY25, increasing its overall score to 103.

It also continued to broaden its partnership with the RSPB during the year, launching a low fat, salt and sugar snacking range, with 5p from each pack donated to the bird charity.

Since it partnered with the RSPB in 2023, Ella’s committed to restoring, rewilding and protecting 30 million sq ft of grassland meadows across nine projects in the UK by 2030. In the first year of the 30 by 30 project, more than three million sq ft of grassland and wildflower meadows have been restored, protecting rare birds and bugs, including the nesting curlew in Otmoor and the northern colletes bee in Tiree.