TreeHouse Foods (THS) Barclays 18th Annual Global Consumer Staples Conference 2025 summary

Market environment and private label trends

• Grocery consumption is down, with private label volumes flat or slightly varied by category.

• Consumers are managing costs by reducing basket size, impacting both grocery and private label segments.

• Private label share is slowly increasing, but overall units are declining.

• Retailers are focusing on optimizing private label assortment, mix, and pricing for profitability.

• Incremental private label growth is expected to be targeted rather than broad-based.

Portfolio optimization and category focus

• Strategic focus has shifted to categories with strong quality, assortment, and price, such as crackers, broth, and refrigerated dough.

• Investments in coffee and tea have been made through acquisitions like Farmer Brothers and Harris Tea.

• Building scale in fewer categories enables deeper expertise and better customer solutions.

• Divestiture of meal prep improved the balance sheet and allowed reinvestment in core businesses.

• Logistics scale is valued, but deep category expertise is essential for customer relationships.

Supply chain, service, and contract structure

• Post-pandemic, service has become the top priority for retailers, followed by cost and quality.

• More multi-year agreements and pass-through pricing are being seen, increasing business stability.

• The company acts as the supply chain for retailer brands, focusing on execution rather than setting marketing trends.

• Capital investments have addressed past supply chain disruptions and improved processes.

• Service levels and customer relationships have reached their highest levels in recent years.