TreeHouse Foods has announced plans to reorganise its structure from three divisions to two, in a move to optimise its business.
As of this quarter, the US private-label supplier will transition from baked goods, beverages and meal solutions into the snacking & beverages and meal preparation divisions.
The snacking & beverages unit will include categories that show greater growth potential in the marketplace: bars, broth, candy, cookies and crackers, griddle, pita, powdered and liquid beverages, pretzels, tea, and other blends.
In 2019, the snacking & beverages division had revenue of approximately $1.7 billion. Its focus will be on revenue growth, and research, development and commercialisation will be geared toward evolving consumer trends.
TreeHouse said the reorganisation of the unit will enable it to apply the proper resources to meet its retail customers’ goals around experience, uniqueness and differentiation in private label.
Meanwhile, the meal preparation division will consist of: bouillion, cheese and pudding, hot cereal, non-dairy creamer, pasta and dry dinners, pickles, pourable and spoonable dressings, preserves, red sauces, refrigerated dough, sauces, single-serve coffee, and syrup. In 2019, the unit had revenue of around $2.6 billion.
“Following an in-depth review of our categories and strategies, we have decided to organise ourselves in a manner that we believe best serves our customers,” said Steve Oakland, CEO of TreeHouse Foods.
“The retail grocery landscape continues to evolve and be very competitive, and our customers are looking to solve two fundamentally different goals. First, to help demonstrate value to the consumer and improve margins that they can invest to drive consumer traffic; and second, to help introduce uniqueness and innovation, so they can differentiate themselves and be more relevant to their distinct shopper base.
“Our reorganisation not only enables us to align our resources to help our customers achieve their goals, but it also better positions us for growth going forward.”
Last year TreeHouse Foods offloaded its snacks division to Atlas Holdings in a deal worth $90 million.
© FoodBev Media Ltd 2020
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