OAK BROOK, ILL. – Following a strategic review that began in November 2021, TreeHouse Foods, Inc. has chosen to focus on its Snacking & Beverages business. Management is exploring options for the divestment of the Meal Preparation business unit.
"Throughout the comprehensive strategic review process, we have received clear feedback from multiple constituencies that the long-term prospects for private label and for TreeHouse remain highly compelling, but the business mix is complex,” said Ann M. Sardini, chair of the board. “That feedback further validates the company's strategic plan for simplification and growth.”
TreeHouse Foods’ Meal Preparation business unit is its largest. It generated $2.73 billion in fiscal 2021, up slightly from $2.7 billion in fiscal 2020. The product portfolio includes center-of-the-store and entree meal items in shelf-stable and refrigerated formats for retail, foodservice and industrial customers. Applications include single-serve coffee, powdered creamer, refrigerated dough, dressings, dips, sauces, dry dinners, hot cereals, pasta, salsas, syrups, pasta sauces, jams and jellies, pickles, and cheese sauces.
The Snacking & Beverages business manufactures and sells sweet and savory baked food items, including cookies, crackers, waffles, pita chips, pretzels, snack bars and confectionery items, and such beverage applications as ready-to-drink, coffee and tea concentrates, and bagged tea. The business generated $1.59 billion in fiscal 2021, down from $1.65 billion the previous year.
The company reaffirmed its fiscal 2022 guidance of net sales growth of 11% year-over-year and adjusted EBITDA of $385 million to $415 million. Business performance improvement is weighted toward the second half of the year, according to the company."The demand trends in private label continue to strengthen, and we are well-positioned to build on our momentum in advantaged categories,” said Steven T. Oakland, president and chief executive officer. “We remain confident in our strategy and our outlook for the full year. Our commitment to supporting our customers to meet their growing demand, combined with our ongoing plans to implement supply chain enhancements to reduce costs and improve margins, will drive meaningfully improved results and value creation.”