Strategic and Operational Pivots Set to Improve Treehouse's Growth and Margin Profile

Despite being the largest pure-play private label (PL) manufacturer in the U.S., Treehouse’s performance has historically been stymied by poor execution, including lackluster service levels and disjointed go-to-market efforts. Still, revamped leadership and strategy have mostly remedied internal issues, and we believe PL should continue to ascend, supported by secular trends across the U.S. retail and demographic landscape. While we expect the windfalls from this rise to accrue disproportionately to retailers (who function as brand owners in this context), we think Treehouse now has the right commercial and operational infrastructure in place to capture its fair share of growth and profitability.