TreeHouse CEO: U.S. Store Brands Growth to Outpace Grocery Sector

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February 16, 2010

TreeHouse Foods Chairman and CEO Sam Reed predicts that private-label sales and unit volume growth will outpace the overall consumer packaged good sector in grocery, according to a just-food.com report.

The maker of store brand soups, jams, spreads, sauces is bullish on store brands, especially in light of its recent acquisition of Sturm Foods, a private label manufacturer of hot cereal and powdered soft-drink mixes.

"We expect to add Sturm to the TreeHouse family and will work to expand their base of customers throughout our North American distribution network," Reed said. "We see a relatively benign cost environment that will allow us to focus on new business opportunities while maintaining our diligent pursuit of production and distribution efficiencies."

TreeHouse fourth-quarter net income more than tripled in 2009 from $6.8 million to $22.1 million. In 2009 overall net income jumped to $81.3 million, up from $28.3 million, due to “higher gross profits and lower selling and finance costs,” according to the report. Total sales were up only slightly from $1.5 billion in 2008 to $1.51 billion in 2009.

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