BOSTON — It has been six years since Steven Oakland took over as president and chief executive officer of TreeHouse Foods, Inc., Oak Brook, Ill. Under his leadership the company has reorganized and streamlined its operations and supply chain, and significantly reduced the size of the private label manufacturer’s product portfolio.

All of that was done during a pandemic, global supply chain disruption and one of the worst periods of global inflation in decades. But with those significant disruptions receding into the past, industry observers are waiting to see the benefits of the changes.

In February 2018, a month before Oakland was named CEO, TreeHouse Foods incurred a loss of $286.2 million on sales of $6.31 billion during fiscal year 2017. The company’s stock price was trading at $38.20 per share a day after the results were announced. In fiscal 2023 (the most recent full-year results), TreeHouse Foods earned $53.1 million on sales of $3.43 billion and the company’s stock price stood at $35.01 per share on Feb. 20. Today, the company’s stock price has risen to $41.76 per share at the market close on Sept. 9.

During a Sept. 5 presentation at the Barclays Global Consumer Staples Conference, Oakland reminded the audience that TreeHouse’s structure when he took over included 13 enterprise resource planning systems and 119 distribution points.

“It was a business that wasn't designed to leverage at scale,” he said. “And, so, it also became very clear really early that we had two very distinct sets of businesses in our portfolio. We had some high cash-generating businesses that were declining, and we had a group of businesses that I thought would make a great public company. They were faster growing, higher margin.”

In October 2022, TreeHouse Foods completed the sale of its Meal Preparation business unit to Investindustrial for $950 million. The company’s portfolio is now focused on snacks and beverages.

“When we did the divestiture of our meal prep segment, we think we really liberated those higher growth, better businesses, and what I would consider a better public company,” Oakland said. “And we also generated a lot of cash there. So, we also liberated our balance sheet and put us in a position where we can invest both in our infrastructure and in our supply chain and in bolt-on M&A.”

Acquisitions the company has made since the divestiture include the Oct. 23 acquisition of the Bick’s pickle, Habitant pickled beets, Woodman’s horseradish and McLarens pickled onions brands for $20 million from the J.M. Smucker Co., and a coffee processing plant in Northlake, Texas, in June 2023.

“We’ve invested in our coffee business,” Oakland said. “We’ve invested a lot in our pickle business. And, so, I think we found niches within those things where we can add important new growth opportunities …”

Benefiting the company has been greater consumer demand for value as inflation has driven prices higher, but also retailer investment in differentiated private label brands.

For example, Walmart Inc. launched its Bettergoods line of private label products in April that feature culinary experiences, plant-based applications and “made without” formulations. Many of the 300 items in the line are positioned as premium, according to the company.

“If you think about Walmart, they’ve had a very robust private label program, but it’s been Great Value,” Oakland said. “And Great Value is exactly what its namesake is. It’s a great value product.

“I think we’ve heard (Walmart) talk about the different consumers that are now searching for value and using Walmart as a venue for that value. And, so, I think (Bettergoods) is an opportunity for them to continue to serve that core customer with Great Value, but then also serve the needs of a different customer that’s now walking in their building or using their online platforms and give them something that’s slightly more experiential.”

When TreeHouse Foods issued its fiscal 2024 second-quarter earnings in early August, the company reaffirmed its outlook for net sales to be in a range of $3.43 billion to $3.50 billion and narrowed its adjusted EBITDA to a range of $360 million to $380 million.

“We’re so confident in what’s going on in our plants today; we’ve invested in a much more aggressive commercial team,” Oakland said. “So, I think we now have both the internal assets and the people on top of those assets to drive that business more consistently.