TreeHouse Foods reorganizes its business into two divisions to optimize operations

USA – American food processing company, TreeHouse Foods has announced a series of organizational changes designed to optimize the business and further create value for customers.

Beginning in the first quarter its 2020 financial year, TreeHouse will reorganize from three divisions, currently structured according to product category; Baked Goods, Beverages and Meal Solutions into to two divisions.

TreeHouse Foods said that the two new operating division will be organized according to market dynamics – Snacking & Beverages and Meal Preparation.    

According to Steve Oakland, CEO and President of TreeHouse Foods, the new structure will help demonstrate value to the consumer and improve margins that they can invest to drive consumer traffic.

Oakland also believes that the new operating structure will also help the company to introduce uniqueness and innovation in its products so they can differentiate themselves and be more relevant to their distinct shopper base.

“Following an in-depth review of our categories and strategies, we have decided to organize ourselves in a manner that we believe best serves our customers,” Steve Oakland said.

“The retail grocery landscape continues to evolve and be very competitive, and our customers are looking to solve two fundamentally different goals.

“Our reorganization not only enables us to align our resources to help our customers achieve their goals, but it also better positions us for growth going forward.”

Snacking & Beverages

The Snacking & Beverages division will include categories which show greater growth potential in the marketplace.

The division will include; Bars, Broth, Candy, Cookies & Crackers, Griddle, Pita, Powdered & Liquid Beverages, Pretzels, Tea, and Other Blends. In 2019, the Snacking & Beverages division had revenue of approximately US$1.7 billion.

The company says that the focus of the division will be on revenue growth and research, development and commercialization will be geared toward evolving consumer trends.

TreeHouse has appointed Kevin G. Jackson as President, Snacking & Beverages. He will report to Steve Oakland, CEO and President. Moe Alkemade, President of the Beverages division, will be leaving TreeHouse to pursue other opportunities.

Meal Preparation

TreeHouse’s said that the new Meal Preparation division will allow the company to apply resources that better align with customers’ goals for driving value within the center of the retail grocery store.

The division will be comprised of: Bouillion, Cheese & Pudding, Hot Cereal, Non-Dairy Creamer, Pasta & Dry Dinners, Pickles, Pourable & Spoonable Dressings, Preserves, Red Sauces, Refrigerated Dough, Sauces, Single Serve Coffee, and Syrup.

According to the company, the focus of the division will be on productivity, efficiency and cash flow while operational progress will be driven by continuous improvement and value engineering.

The reorganization allows TreeHouse to apply resources that better align with customers’ goals for driving value within the center of the retail grocery store.

In 2019, the Meal Preparation division had revenue of approximately $2.6 billion.

Mark Fleming, currently President, Baked Goods, will serve as President, Meal Preparation reporting to Shay Braun, Chief Operations Officer. Mr. Braun will continue to maintain his current supply chain responsibilities. 

Additional organizational changes

Following the reorganization, Triona Schmelter, currently President, Meal Solutions, will take on the newly created role of Chief Transformation Officer.

She will focus her efforts on how the company leverages shared resources across the organization, including its approach to distribution and logistics, sourcing and shared business services.

In this new role, Ms. Schmelter will work with the functional leaders to build capabilities for the future and capture savings to drive growth.

TreeHouse Foods has also appointed William J. Kelley as Executive Vice President and Chief Financial Officer.

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