TreeHouse – In Depth

TreeHouse Overview

TreeHouse Foods, Inc. is a manufacturer of packaged foods and beverages with more than 50 manufacturing facilities across the United States, Canada and Italy that focuses primarily on private label products for both retail grocery and food away from home customers.

They  manufacture shelf stable, refrigerated, frozen and fresh products, including beverages and beverage enhancers (single serve beverages, coffees, teas, creamers, powdered beverages and smoothies); meals (cereal, pasta, macaroni and cheese and side dishes); retail bakery (refrigerated and frozen dough, cookies and crackers); condiments (pourable and spoonable dressing, dips, pickles, soups and sauces) and healthy snacks (nuts, trail mix, bars, dried fruits and vegetables).

TreeHouse Foods, Inc. was formed in 2005, and has experienced many changes and expansions throughout the years. It was previously known as Dean Specialty Foods, a division of Dallas-based Dean Foods Company. They acquired the ConAgra private label lines in 2016.

 

TreeHouse  currently supply more than 200 food retail customers in North America, including over 50 of the 75 largest food retailers, and more than 75 foodservice customers, including 50 of the 100 largest restaurant chains. A relatively limited number of customers account for a large percentage of their consolidated net sales. For the year ended December 31, 2016, their ten largest customers accounted for approximately 57.7% of  consolidated net sales.

For the years ended December 31, 2016, 2015 and 2014, their largest customer, Walmart Stores, Inc. and its affiliates, accounted for approximately 18.7%, 20.7%, and 18.8%, respectively, of consolidated net sales.

 

Growth through acquisitions

On April 24, 2006, the Company acquired the private label soup and infant feeding business from Del Monte Corporation.

On May 31, 2007, the Company acquired VDW Acquisition, Ltd. (“San Antonio Farms”), a manufacturer of Mexican sauces.

On October 15, 2007, the Company acquired the assets of E.D. Smith Income Fund (“E.D. Smith”), a manufacturer of salad dressings, jams, and various sauces.

On March 2, 2010, the Company acquired Sturm Foods, Inc. (“Sturm”), a manufacturer of hot cereals and powdered drink mixes.

On October 28, 2010, the Company acquired S.T. Specialty Foods, Inc. (“S.T. Foods”), a manufacturer of dry dinners, which include macaroni and cheese and skillet dinners.

On April 13, 2012, the Company acquired substantially all of the assets of Naturally Fresh, Inc. (“Naturally Fresh”), a manufacturer of refrigerated dressings, sauces, marinades, dips, and other specialty items.

On July 1, 2013, the Company acquired Cains Foods, L.P. (“Cains”), a manufacturer of shelf stable mayonnaise, dressings, and sauces.

On October 8, 2013, the Company acquired Associated Brands Management Holdings Inc., Associated Brands Holdings Limited Partnership, Associated Brands GP Corporation, and 6726607 Canada Ltd. (collectively, “Associated Brands”), a manufacturer of powdered drinks, specialty teas, and sweeteners.

On May 30, 2014, the Company acquired all of the outstanding equity interests of PFF Capital Group, Inc. (“Protenergy”), a manufacturer of broths, soups, and gravies.

On July 29, 2014, the Company acquired Flagstone Foods (“Flagstone”), a manufacturer of snack nuts, trail mixes, dried fruit, snack mixes, and other wholesome snacks.

On February 1, 2016, the Company acquired all of the outstanding common stock of Ralcorp Holdings, Inc., the corporation through which the private brands business of ConAgra Foods, Inc. (“Private Brands Business”) was operated. The Private Brands Business is a leading manufacturer of private label refrigerated and shelf stable products in the bars, bakery, cereal, condiments, pasta, and snacks categories.

Ralcorp Holdings, Inc. was renamed TreeHouse Private Brands, Inc. during the first quarter of 2016.

 

Categories & Products

Cookies and crackers (9.8% of 2016 Sales). They produce cookies, crackers, pretzels, pita chips, and candy. These products are predominantly sold to grocery retailers. One of the largest manufacturers of private label crackers in-store bakery cookies and pretzels in the United States, based on volume.

Snack nuts and trail mixes are sold under the Ann’s House of Nuts®, Amport®, and Goodfields® trademarks. In-store bakery products are sold under the Lofthouse® trademark


Cereals (8.9% of 2016 Sales). They produce a variety of ready-to-eat cereals as well as instant and cook-on-stove hot cereals, including oatmeal, farina, and grits in single-serve instant packets and microwaveable bowls. These products are sold primarily to grocery retailers. They are the largest manufacturer of private label instant hot and ready-to-eat cereals in the United States, based on volume.

Branded oatmeal is sold under the McCann’s® trademark.


Pasta and dry dinners (8.8% of 2016 Sales). They produce both private label and branded dry pasta, in various sizes and shapes, as well as private label macaroni and cheese, skillet dinners, and other value-added side dishes. These products are sold to grocery retailers, foodservice customers, and other food manufacturers that use pasta as an ingredient. They are the largest manufacturer of private label dry pasta and macaroni and cheese dinners in the United States, based on volume.

Dry pasta is sold under the Golden Grain®, Anthony’s®, Luxury®, Ronco®, Mueller’s®, and Pennsylvania Dutch® trademarks.


Beverages (8.0% of 2016 Sales).  They produce a variety of powdered drink mixes, including lemonade, iced tea, energy, vitamin enhanced, and isotonic sports drinks. Also included in this category are specialty teas and our single serve beverages, which include our single serve hot beverages, such as filtered coffee, cappuccino, hot cocoa, and cider. These products are sold primarily to grocery retailers. They are the largest manufacturer of private label powdered drink mixes in both the United States and Canada, based on volume.

Single serve hot beverages are sold under the Caza Trail® and Grove Square® trademarks.


Salad dressings (6.1% of 2016 Sales). They produce pourable and spoonable, refrigerated and shelf stable salad dressings. Our salad dressings are sold primarily to grocery retailers throughout the United States and Canada, and encompass many flavor varieties. They are the largest manufacturer of private label salad dressings in both the United States and Canada, based on volume.

Certain refrigerated dressings and sauces are sold under the Naturally Fresh® trademark. Additionally, certain mayonnaise, dressings, and sauces are sold under the Cains® and Olde Cape Cod® and  Knox® gelatin trademarks. Other refrigerated products are sold under the Second Nature® trademark.\


Soup and infant feeding (6.0% of 2016 Sales) . Condensed, ready to serve, and powdered soup, as well as broth and gravy, are produced and packaged in various sizes and formats, including cans and cartons, from single serve to larger sized packages. We primarily produce private label products sold to grocery retailers. They are the largest manufacturer of private label soup in the United States, based on volume. They co-pack conventional and organic infant feeding products for branded baby food companies in the Industrial and Export segment.


Sauces (5.4% of 2016 Sales) . They produce a wide variety of Mexican and other sauces, including salsa, picante sauce, cheese dip, enchilada sauce, pasta sauces, barbeque sauces, taco sauce, and table and flavored syrups that we sell to grocery retailers and foodservice customers in the United States and Canada, as well as to industrial markets. They are the largest manufacturer of private label salsa in the United States and one of the largest manufacturers of private label table syrup, flavored syrup, and barbeque sauce in the United States, based on volume.

Sauces and syrups are sold under the  Bennett’s®, Hoffman House®, Roddenbery’s Northwoods®, and San Antonio Farms® trademarks.


Pickles (5.2% of 2016 Sales). . They produce pickles and a variety of related products, including peppers and pickled vegetables and are the largest  private label and regional branded producer in the pickles category. These products are sold to grocery retailers, foodservice, co-pack, and industrial customers.

Trademarks sold within the North American Retail Grocery segment include the following pickle brands, Farman’s®, Nalley®, Peter Piper®, and Steinfeld’s®.


Beverage enhancers (5.1% of 2016 Sales) . Beverage enhancers include non-dairy powdered creamer, refrigerated liquid non-dairy creamer, and sweeteners. Non-dairy powdered creamer is used as coffee creamer or whitener and as an ingredient in baking, hot and cold beverages, gravy mixes, and similar products. Product offerings in this category include both private label and branded products packaged for grocery retailers, foodservice products for use in coffee and beverage service, and other industrial applications, such as portion control, repackaging, and ingredient use by other food manufacturers. They are the largest manufacturer of non-dairy powdered creamer in the United States, based on volume..

Non-dairy powdered creamer is sold under the Cremora® trademark, and non-dairy refrigerated liquid creamer is sold under the Mocha Mix® trademark.


Jams (1.7% of 2016 Sales) . They produce jams, preserves, and jellies that are sold to grocery retailers and foodservice customers in the United States and Canada, and are the largest manufacturer of private label jams in Canada, and one of the largest manufacturers of private label preserves and jellies in the United States, based on volume

Jams and other sauces are sold under the E.D. Smith®  and  Habitant® trademarks.


Aseptic products (1.6% of 2016 Sales) . Aseptic products included in this category include cheese sauces and puddings. Aseptic products are processed under heat and pressure in a sterile production and packaging environment, creating a product that does not require refrigeration prior to use. These products are sold primarily to foodservice customers in cans and flexible packages. Aseptically produced soup and broth are included in the soup and infant feeding category.


Other Products (0.9% of 2016 Sales) . They produce a variety of other products, the majority of which include pie fillings, desserts, and baking products. These products are sold to grocery retailers, foodservice, co-pack, and industrial customers. Other products represented approximately 0.9% of consolidated net sales in 2016.


 

Strategic Initiatives

Expand partnerships with retailers.

Utilize scale and innovation to meet customer needs.

Drive growth and profitability from existing product portfolio.

Leverage cross-selling opportunities across customers, sales channels, and geographies.

Growth through acquisitions.

 

Manufacturing Facilities (2017) 

Facility Location (1) Principal Products Occupancy Segment (2)
Atlanta, Georgia Dressings, sauces, and dips Owned A, B
Ayer, Massachusetts (3) Mayonnaise, dressings, and sauces Owned A, B
Azusa, California* (3) Bars, fruit snacks Leased A, C
Battle Creek, Michigan* (4) Ready-to-eat cereal Owned A, B, C
Brantford, Ontario, Canada* Frozen griddle Owned A, B
Brooklyn Park, Minnesota Macaroni and cheese and skillet dinners Owned A
Buckner, Kentucky* Syrups, mayonnaise, preserves, jams, barbeque and other sauces Owned A, B, C
Cambridge, Maryland Soups, broths, and gravies Leased A, C
Carollton, Texas* Refrigerated dough Owned A, B
Cedar Rapids, Iowa* Hot cereal Owned A, B, C
Chicago, Illinois Refrigerated foodservice pickles Owned B
Columbia, South Carolina* Dry pasta Owned A, B, C
Delta, British Columbia, Canada Specialty tea Leased A, C
Delta, British Columbia, Canada* (3) Frozen griddle Leased A, B
Dixon, Illinois Aseptic cheese sauces, puddings, and gravies Owned B, C
Dothan, Alabama* Snack nuts, trail mix Leased A
El Paso, Texas* Snack nuts, trail mix Leased A
Excelsior Springs, Missouri* Dry pasta Owned A, B, C
Faison, North Carolina Pickles, peppers, relish, and syrup Owned A, B, C
Fara Gera d’Adda, Bergamo, Italy* Dry pasta Leased A, B, C
Forest Park, Georgia* Refrigerated dough Owned A, B
Fridley, Minnesota* In-store bakery Owned A, B
Georgetown, Ontario, Canada* Crackers Owned A, B, C
Green Bay, Wisconsin Pickles, peppers, relish, and sauces Owned A, B, C
Hanover, Pennsylvania* Pretzels Owned A, B, C
Kenosha, Wisconsin Macaroni and cheese and skillet dinners Owned A
Kitchener, Ontario, Canada* Crackers Owned A, C
Lakeville, Minnesota* Bars, fruit snacks Owned A
Lancaster, Ohio* Ready-to-eat cereal Owned A, B, C
Lancaster, Pennsylvania* Pretzels Owned A, B, C
Lodi, California* In-store bakery Owned A, B
Manawa, Wisconsin Cereal and beverages Owned A, B, C
Medina, New York Beverages, beverage enhancers, dry dinners, and dry soup Owned A, B, C
Milwaukee, Wisconsin* Pita chips Owned A, B, C
Minneapolis, Minnesota Snacks Owned A, C
New Hampton, Iowa Non-dairy powdered creamer Owned C
North East, Pennsylvania Salad dressings and mayonnaise Owned A, C
Ogden, Utah* In-store bakery Leased A, B
Pecatonica, Illinois Non-dairy powdered creamer Owned A, B, C
Pittsburgh, Pennsylvania Soups, broths, gravies, and baby food Owned A, C
Plymouth, Indiana Pickles, peppers, and relish Owned A, B, C
Princeton, Kentucky* Crackers Owned A, B, C
Richmond Hill, Ontario, Canada Soups, broths, and gravies Leased A, C
Robersonville, North Carolina Snacks Leased A, C
San Antonio, Texas Mexican sauces Owned A, B, C
South Beloit, Illinois* Cookies Owned A, B
Sparks, Nevada* Ready-to-eat cereal Owned A, B, C
Tolleson, Arizona* Dry pasta Owned A, B, C
Tonawanda, New York* Cookies Owned A, B
Verolanuova, Brescia, Italy* Dry pasta Owned A, B, C
Visalia, California* Pretzels Owned A, B, C
Wayland, Michigan Non-dairy powdered creamer Owned A, C
Winona, Ontario, Canada Jams, pie fillings, and specialty sauces Owned A, B, C
Womelsdorf, Pennsylvania* Candy Owned A, C

Facility locations marked with an asterisk (*) were part of the acquisition of the Private Brands Business in February 2016.

Segments  A) North American  Retail Grocery B) Food Away From Home  C) Industrial & Export

 

Source: TreeHouse Foods 10-K

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