Sector News

TreeHouse Foods embracing a customer-centric strategy

January 3, 2019
Food & Drink

TreeHouse Foods, Inc. is developing a strategy that puts its customer first. The company is reorganizing its business structure and sales department to make it easier for customers to interact with all aspects of the company rather than representatives from different divisions.

“I think our current five division structure was set up nicely for TreeHouse, but not nicely for the customer,” said Steven T. Oakland, president and chief executive officer, Dec. 11 during the company’s annual investor day presentation. “It was confusing.”

Maurice Alkemade, chief strategy officer, added, “We’re complicated. We go to an average retailer with five or six divisions, not necessarily as one TreeHouse. The organization that we’re moving to is going to be far more centralized, more focused on retailers.”

The reorganization will merge the company’s Meals and Condiments business units to create four business units around beverages, baked foods, snacks and the center of the store. The company also has put its snacks business, which consists of nuts and trail mixes, under strategic review. If that business is divested, it will further reduce TreeHouse’s operating structure from four units to three.

TreeHouse graphicMr. Oakland emphasized that there is 1% to 2% of profitable growth in the product categories where the company currently competes.

“We don’t have to do (an) acquisition, we don’t have to do tremendous new product investment, (and) we don’t have to do a lot of those things,” he said. “Now we have to service the customer right. We have to understand their needs. We have to prove to them that we’ve turned the operational thing around, that we’ll deliver on time, in full when they want it. So, it’s not that we don’t have to do work to do that, but the growth exists in our current business today.”

TreeHouse Foods management is forecasting the company will generate fiscal 2019 sales in a range between $5.45 billion to $5.75 billion and earnings per share in a range between $2.35 per share and $2.75 per share.

On Nov. 1, when the company issued its third-quarter results for fiscal 2018, it forecast year-end earnings per share in a range between $2.05 and $2.25.

“We are, in fact, at a strategic inflection point,” Mr. Oakland said. “Our vision is to be the undisputed solutions leader for custom brands. And the word solutions is key because it’s more than just products. We bring a lot more to the retailer than that. And our mission is to create value as our customers’ preferred manufacturing and distribution partner, providing thought leadership, superior innovation, and a relentless focus on execution.”

By Keith Nunes

Source: Food Business News

comments closed

Related News

January 29, 2023

Danone appoints three new deputy CEOs

Food & Drink

Danone has appointed three deputy CEOs to “better connect categories and regions” and drive the delivery of its ‘Renew Danone’ strategy. The new appointees are Veronique Penchienati-Bosetta, Shane Grant and Juergen Esser. They will report to Danone CEO Antoine de Saint-Affrique.

January 29, 2023

PepsiCo Portugal invests €7.5m in biodigester

Food & Drink

PepsiCo Portugal has announced that it will invest €7.5 million to construct a new biodigester, which will turn organic waste into biogas. As well as helping its Carregado facility to achieve a 30% reduction in carbon emissions, the biodigester will also contribute to reducing gas consumption, allowing the installation to use the biogas produced during the anaerobic digestion process.

January 29, 2023

Kerry’s fellowship with Upcycled Food Foundation explores future of food waste prevention

Food & Drink

Kerry is sponsoring The Kerry Upcycled Food Foundation Fellowship in a new partnership with the Upcycled Food Foundation (UFF), the non-profit subsidiary of the Upcycled Food Association (UFA). The research fellowship is the second initiated by the UFF and will work toward advancing the understanding of the market, consumer perception and technical opportunities of upcycled food.

How can we help you?

We're easy to reach