TreeHouse Foods Sees Opportunities In Private Label Trends
Additionally, the decrease was attributed to unfavorable volume/mix related to planned distribution exits primarily in the company's coffee and in-store bakery categories, and the restoration of one of its broth facilities. These items were partially offset by volume/mix from the acquisition of the coffee roasting capability and new business wins.
During the conference call, Oakland said the company is now running key broth production lines and shipping products from its facility that had been undergoing a modernization process over the past few months.
“We have upgraded our equipment, refined and improved our processes, and are progressing against our internal timeline,” he said. “Looking ahead, we will continue to work with our customers to fulfill current needs and prepare for the upcoming broth season. We believe the restoration of this facility will provide the planned contributions to net sales and profitability in the back half.”
Oakland is also confident TreeHouse can deliver additional growth because of the company’s depth. This includes its “advantaged capabilities” within its core categories, competing in product categories that are currently in high demand, and leveraging its category expertise and consumer insights to help its retail partners drive growth.
“We have created a net sales pipeline that we are excited about,” he said. “We are executing well against our plan for 2024. We've secured a variety of opportunities throughout the first half of the year, including wins in cookies, refrigerated dough, pretzels, and pickles, bolstering my confidence in our ability to deliver volume growth not only in the third and fourth quarters but beyond.