Despite Amazon's price cuts at Whole Foods, the CEO of a top food supplier told CNBC on Tuesday that his company has seen sales "increase dramatically."
"Ultimately, sales drives a lot of leverage on margins, on delivery and costs," said Hain Celestial CEO Irwin Simon, who says his company has more than 1,500 products authorized at natural and organic grocer Whole Foods.
Simon said Lake Success, New York-based Hain will continue to work on prices with Amazon, but added he thinks "it's important to be able to put out there well-priced products."
"I've seen costs come down, and we will participate with [Whole Foods]," he said in an interview on "Squawk Alley." "But the volume has increased dramatically at Whole Foods."
Hain, an organic and natural products company, said earlier this month that net sales rose 5 percent in its fiscal second quarter to $775.2 million, from the same quarter a year earlier. It reported adjusted net income of $42.7 million, a 30 percent increase.
The earnings came months after the aggressive expansion by Jeff Bezos' Amazon into the grocery business by completing its $13.7 billion acquisition of Whole Foods. Shortly before completing the deal, the e-commerce giant announced it would lower prices at Whole Foods on a selection of staples across stores.
Around the time the deal was announced, Hain said it saw many positives to Amazon buying Whole Foods.
Additionally, Simon said Hain will focus on e-commerce throughout 2018 as he believes it will be a big part of the company's growth. He also said Hain would put increased focus on where its products come from.
We're focused on "fresh, fresh and fresh," he said. "We're focused on sugars, we're focused on calories."
Hain has more than 60 brands, which include Arrowhead Mills, Rudi's Organic Bakery and Almond Dream. The company's shares were more than 1 percent lower Tuesday, trading around $35 a share.