<SEC-DOCUMENT>0001193125-12-067667.txt : 20120906
<SEC-HEADER>0001193125-12-067667.hdr.sgml : 20120906
<ACCEPTANCE-DATETIME>20120217170634
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-12-067667
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20120217

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HAIN CELESTIAL GROUP INC
		CENTRAL INDEX KEY:			0000910406
		STANDARD INDUSTRIAL CLASSIFICATION:	FOOD & KINDRED PRODUCTS [2000]
		IRS NUMBER:				223240619
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		58 SOUTH SERVICE ROAD
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
		BUSINESS PHONE:		6317302200

	MAIL ADDRESS:	
		STREET 1:		58 SOUTH SERVICE ROAD
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HAIN FOOD GROUP INC
		DATE OF NAME CHANGE:	19941219

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KINERET ACQUISITION CORP
		DATE OF NAME CHANGE:	19931021

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	21ST CENTURY FOOD PRODUCTS CORP
		DATE OF NAME CHANGE:	19930830
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<TITLE>SEC Response Letter</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">[The Hain Celestial Group, Inc. letterhead] </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>VIA EDGAR </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">February&nbsp;17, 2012
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Mr.&nbsp;Karl Hiller </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">United States
Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F Street, N.E. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Washington, D.C. 20549 </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Re:</B></FONT></TD>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Hain Celestial Group, Inc.</FONT></TD>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Form 10-K for Fiscal Year Ended June&nbsp;30, 2011</FONT></TD>
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<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Filed August&nbsp;29, 2011</FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">File No. 0-22818</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
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</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Mr.&nbsp;Hiller: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">This letter is submitted on behalf of The Hain Celestial Group, Inc. (the &#147;<U>Company</U>&#148;) in response to the comments that you provided on behalf of the staff of the Division of Corporation
Finance (the &#147;<U>Staff</U>&#148;) of the Securities and Exchange Commission (the &#147;<U>SEC</U>&#148;) in your letter (the &#147;<U>Comment Letter</U>&#148;) dated January&nbsp;13, 2012. The responses to the Staff&#146;s comments are set
forth below, with each paragraph numbered to correspond to the numbered comments set forth in the Comment Letter. For your convenience, your comments have been reproduced in italics below, together with the responses. Capitalized terms used and not
defined herein have the meanings given to such terms in the Company&#146;s filing. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Form 10-K for the Fiscal Year ended June&nbsp;30, 2011
</U></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Financial Statements </U></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Note 18 &#150; Segment Information, page 67 </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>1.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note your response to prior comments 1, 3 and 4, regarding your segment disclosures, in which you describe various levels of decision-making and clarify that your
CODM primarily uses sales data in determining resource allocation. We would like to better understand your process of segment identification and have therefore compiled the additional comments in this letter. Please contact us by telephone in
advance of your reply if you require further guidance of clarification about the information we have requested. Please address the following points.</I> </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I></I><I>Submit a schedule listing the operating segments you have identified according to the definition in ASC 280-10-50-1.</I>
</FONT></P></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Based on the definition in ASC 280-10-50-1 and our analysis as discussed in the following
paragraphs, we have reviewed our historical conclusion and reaffirmed that our company has one operating segment: the manufacturing, distribution, marketing and sale of natural and organic products, which we have disclosed in Note 18 to the
consolidated financial statements. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">ASC 280-10-50-1 states that &#147;an operating segment is a component of a public entity
that has all of the following characteristics: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">It engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of
the same public entity). </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Its operating results are regularly reviewed by the public entity&#146;s chief operating decision maker to make decisions about resources to be allocated to the segment
and assess its performance. </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">c)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Its discrete financial information is available.&#148; </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">In identifying our operating segment, we assessed the characteristics of our operations, which include similarities in the Company&#146;s products in the natural and organic consumer markets, the
commonality of the Company&#146;s customers across brands and geographies and the Company&#146;s unified marketing and distribution strategy. The Company&#146;s brands are marketed to consumers generally as healthier or &#147;better-for-you&#148;
products and as such all of the Company&#146;s brands collectively benefit in the marketplace from this common marketing strategy. Resource allocation decisions are driven by the potential for increased sales. This includes considerations of whether
the Company would be able to achieve expanded distribution, increased customer penetration, improved consumer consumption or whether a particular product can be sold into a new geography. In making decisions about resource allocation and assessing
performance, the Chief Operating Decision Maker (&#147;<U>CODM</U>&#148;) focuses on sales performance by brand or product category using internally generated sales data, discussions with senior management, and externally developed market
consumption data acquired from independent sources. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In assessing performance, the CODM receives internally generated sales
data by brand, which is provided to him on a daily and quarterly basis, and also receives and reviews certain Company consolidated quarterly and year-to-date information, all of which is described further in our response to the fourth and fifth
bullets of this comment. The CODM receives information that reflects complete, discrete financial information which details levels of operating profitability on a consolidated basis only. We assessed the nature of the financial information used by
our CODM. As a result, we have concluded that since this information is provided and reviewed only on a consolidated basis, we have only one operating segment. See also, our discussion below regarding ASC-280-10-50-1 and our brands. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Tell us whether your CODM receives sales data by brand and explain how you determined whether your brands represent or have the characteristics of
operating segments. To the extent that you believe brands are not operating segments because your CODM does not review their operating results, identify the grouping of brands within operating segments and describe the resource allocation decisions
which pertain to these segments for the year ended June&nbsp;30, 2011.</I> </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Our CODM receives sales data by
brand or product category (grouping of brands) in daily sales flash reports and the quarterly information packages, as more fully discussed in our response to the comments in the fourth and fifth bullets of this comment. </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We have determined that our individual brands are not separate segments under the criteria of ASC 280-10-50-1. While each of our brands
engages in business activities that earn revenues and incur expenses, not all expenses that are required to continue operations, such as supply chain (procurement, warehousing and distribution), marketing, sales and administrative, are incurred at
the brand level. Our brands do not operate on a standalone basis, but rather are supported by larger shared service organizations (such as a common sales force, supply chain or administration). Marketing programs may benefit multiple brands in a
product category, sales force personnel are shared across many or all brands in a geography and all administrative costs are shared. In limited instances, acquired brands may operate on a standalone basis for a planned period subsequent to
acquisition (such as where there is a contractual obligation to track operating results for contingent consideration payments, as further discussed in our response to comment 3); however, our strategy and practice is, and has been, to integrate
acquired brands into our existing operations. With respect to operating results, while we do track sales by brand in our internal reports, we do not report full operating income (which we define to be gross margin less distribution, selling and
administrative expenses) for each of our brands. A measure of actual brand profit or loss is not calculated and therefore is not available to be used by our CODM in making decisions about resources to be allocated. Since operating results by brand
are not computed, discrete financial information is not available for each brand. Although they meet the first criteria under ASC 280-10-50-1, because each of our brands does not meet the second and third criteria; we have determined that each of
our brands are not separate operating segments. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We group our brands into several product categories (grocery, snacks, tea,
personal care, and other) for purposes of the required disclosure under ASC 280-10-50-40. Sales for these product categories have been disclosed in Note 18. This grouping of brands does not constitute a basis for resource allocation but is
information intended to provide the reader with the ability to better understand the Company&#146;s product offerings. These groupings also do not meet the criteria under ASC 280-10-50-1 as separate segments. </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Identify any operating segments which have been aggregated in the amounts disclosed for your reportable segments. And for all operating segments
which have been aggregated, submit the analysis that you performed in concluding that aggregation is appropriate.</I> </FONT></P></TD></TR></TABLE>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We determined that we have only one operating segment, which also represents our reportable
segment. Based on this determination, the aggregation criterion under ASC 280-10-50-11 is not applicable. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Identify your CODM and submit a copy of the information package provided to the CODM covering all business activities and operating results for the
year ended June&nbsp;30, 2011, plus any additional reports upon which the CODM may have relied in making resource allocation decisions and assessing performance. Please explain your rationale in identifying the CODM as an individual or group
excluding those responsible for resource allocation by brand; it should be clear how your approach is consistent with ASC 280-10-50-5 through 280-10-50-9.</I> </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Submit a copy of all information provided to your board of directors covering business activities and operating results for the year ended
June&nbsp;30, 2011 which was not also provided to your CODM, and explain how your identification of operating segments has properly considered this information in accordance with ASC 280-10-50-6.</I> </FONT></P></TD></TR></TABLE>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company believes it is appropriate to respond to the above two comments together as they are related. </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">ASC 280-10-50-5 states that &#147;the term chief operating decision maker identifies a function, not necessarily a manager with a specific
title. That function is to allocate resources to and assess the performance of the segments of a public entity. Often the chief operating decision maker of a public entity is its chief executive officer or chief operating officer, but it may be a
group consisting of, for example, the public entity&#146;s president, executive vice presidents, and others.&#148; Our CODM has been and continues to be our President, Chief Executive Officer and Chairman of the Board of Directors, Irwin D. Simon.
Our determination was based on operational and reporting protocols of the Company. Mr.&nbsp;Simon has control over the Company&#146;s operating decisions, makes final determinations concerning allocation of resources and assesses company
performance, and oversees members of senior management charged with the responsibility for executing daily operations. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Our
CODM sets consolidated growth targets for sales and profit. His evaluation of performance is based on a number of reports. Our internally generated data is provided to him on a daily basis. These are called &#147;flash&#148; reports which consist of
a Sales Summary Report, a Shipments and Open Orders report and a daily Cash Report. The daily Cash Report also included an &#147;Order Fulfillment&#148; page which reflected sales, margins and promotional costs by brand as we discussed in our
initial response to prior comment 3 and in our response to comment 2, below. (This &#147;Order Fulfillment&#148; report has since been discontinued as it no longer provides meaningful information.) In addition, on a quarterly basis the CODM receives
reports that reflect the consolidated results of the Company: a copy of the &#147;Audit Committee Financial Review Schedules&#148; and a &#147;Key Business Performance Data&#148; package. The reports referenced in this paragraph are being submitted
to the Staff via a separate letter (the &#147;<U>Supplemental Letter</U>&#148;). </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">ASC 280-10-50-6 states that a &#147;public entity may produce reports in which its business
activities are presented in a variety of different ways. If the chief operating decision maker uses more than one set of segment information, other factors, including information presented to the board of directors, may identify a single set of
components as constituting a public entity&#146;s operating segments.&#148; There was no additional information provided to our Board of Directors that was not also provided to our CODM. Selected pages taken from the quarterly information packages
provided to the CODM and also provided in the Supplemental Letter are provided to our Board of Directors. Since the format of the presentation of information to our CODM and to our Board of Directors does not differ, we do not believe this paragraph
applies in our circumstance. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>2.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We understand from your response to prior comment 3, that you track standard margins by brand on a &#147;legacy information technology platform&#148; and that
although such information is compiled and provided to your CODM in a &#147;daily flash report&#148; this report is not reflective of the company as a whole and may no longer serve its original purpose. Please describe the nature of the limitations
which you believe create doubt over the usefulness of the report and explain the purpose which is now in question. As previously requested, also quantify any material differences between the actual and standard margins in the annual flash report and
explain why the report does not include actual margins.</I> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Our response to prior comment 3 was not meant to
imply that the report referenced is used to track standard margins by brand. As we noted in our prior response, the report was developed many years ago when the Company was much smaller, had fewer brands and fewer levels of management. The report
reflects gross sales by brand on a month-to-date basis (there is no quarter or year-to-date equivalent distributed) and related gross margin (based on the gross sales information) using standard costs, and various categories of trade and promotional
spending, all on an incurred basis. The report uses standard cost of goods sold for each SKU shipped as those amounts are readily available in the Company&#146;s information technology (&#147;<U>IT</U>&#148;) system. The equivalent actual cost of
goods sold for each SKU is not calculated or maintained in the system due to the complexities involved in allocating individual variances and overhead costs to the number of SKUs affected each period and the time constraints for timely reporting.
Actual gross margins are only generated at the reporting unit level and provided to the CODM on a consolidated basis. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The
original purpose of the report was to serve as a tool for management to monitor the level of trade and promotional activity and to ensure such activity remained within expectations. Since the purpose of the report was primarily to monitor spending
levels on a daily basis and was not meant to present period-end financial results, there was no need to report or reconcile to actual margins for this application. With the growth of the Company and the acquisition of entities that remain on
separate IT systems, the similar data was not integrated into the original report. In addition, there are additional categories of trade spending which have been added to the Company&#146;s accounting system which also have not been added to the
report. As noted in our response to the first comment, this report has since been discontinued. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">5 </FONT></P>


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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>3.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>In your response to prior comment 4, you indicate that decisions regarding the allocation of resources are made by your CODM on a &#147;project by project&#148;
basis, considering the economics of each project. Please describe the nature of the projects which are encompassed in such decision making. Please also describe the extent to which your CODM reviews historical operating results, including margins
and other measures of brand profitability, when assessing the economic merits of potential brand acquisitions. Describe any efforts on the part of your CODM to compare actual brand profitability subsequent to the acquisition to financial data
considered in deciding to acquire the brands.</I> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Our CODM sets the total target level of capital spending for
the Company on a consolidated basis. To the extent an individual proposed capital spending project reaches the amount designated in the Company&#146;s system of internal control, specific approval of the CODM is required. The nature of the projects
can vary based on the specific needs of the Company at any given time, and can include capital spending for projects such as, but not limited to, information technology systems or enhancements, manufacturing equipment and facilities. Criteria used
to evaluate and approve allocations for capital spending include payback period, return on investment and regulatory requirements. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">When assessing the economic merits of potential acquisitions, the CODM focuses mainly on the measures of earnings before interest, taxes, depreciation and amortization (&#147;<U>EBITDA</U>&#148;) and the
related purchase price multiple and whether it will be accretive to diluted earnings per share. The primary considerations also include whether the brand fills a gap in our portfolio, whether it would strategically expand our geographic range or
strengthen our position in an existing area, whether it is in the early stages of its growth potential, whether it is or has the potential to be a market leader and whether it will provide expansion of distribution for our existing products. As part
of the due diligence process in connection with a potential acquisition, the Company reviews the target&#146;s historical operating results as a means of supporting the financial criteria set forth above. </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In periods subsequent to a completed acquisition, the acquired brand&#146;s results are not compared to the original acquisition criteria,
as discrete financial information becomes unavailable upon integration. Although it is our practice to integrate new brands or businesses as soon as possible, there are certain acquisitions completed where we maintain standalone accounting
information prior to integration into our existing operations, such as when there is a contractual obligation to pay contingent consideration to the seller based on results for a defined future period. Therefore, integration into the Company&#146;s
existing operations is sometimes delayed in these instances so that the results can be more easily tracked. In these circumstances, the CODM will review those results as they relate to the annual budget and our assumptions as to the earnings
accretion that was expected. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">6 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In connection with the Company&#146;s response to your comments, the Company acknowledges
that: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company is responsible for the adequacy and accuracy of the disclosure in the filing; </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Staff comments or changes to disclosure in response to comments do not foreclose the SEC from taking any action with respect to the filing; and
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company may not assert Staff comments as a defense in any proceeding initiated by the SEC or any person under the federal securities laws of the
United States. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We appreciate the Staff&#146;s comments and request that the Staff contact the undersigned
at (631)&nbsp;730-2205 with any questions or comments regarding this letter. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Respectfully submitted,</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Ira J. Lamel</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Ira J. Lamel</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Executive Vice
President and Chief Financial Officer</FONT></P></TD></TR>
</TABLE></DIV>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">7 </FONT></P>

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