TreeHouse Foods CEO Discusses Private Label Market at Barclays Conference

TreeHouse Foods CEO Steve Oakland discusses the challenges facing the consumer industry and the impact on private label sales. He notes that general consumption is down, while private label sales are flattish. Oakland attributes this to the current soft state of the grocery consumer industry. He also touches on the value proposition of private label today, which he believes is similar to where it has been in the past.

TreeHouse Foods CEO Steve Oakland has highlighted the challenges facing the consumer industry and the impact on private label sales. According to Oakland, general consumption is down, while private label sales have remained relatively flat. He attributes this trend to the current soft state of the grocery consumer industry [1].

Oakland notes that the value proposition of private label products today is similar to what it has been in the past. Despite this, private label sales have not seen significant growth. This could be due to a variety of factors, including increased competition from private-label brands and a shift in consumer preferences towards more affordable options [2].

One key factor influencing the current state of the consumer industry is the economic environment. The ongoing macroeconomic pressures, such as inflation and rising living costs, have led consumers to become more price-sensitive. This has resulted in a decrease in overall consumption and a shift towards more affordable private label products [3].

However, the success of private label products also depends on the quality and relevance of the products themselves. According to Oakland, the value proposition of private label products lies in their ability to offer quality products at a lower price point. This resonates with consumers, especially those in the lower- to middle-income brackets, who are trading down to more affordable options [2].

The challenges faced by the consumer industry are not unique to TreeHouse Foods. Other retailers, such as Kohl’s, have also seen a decline in sales and a shift towards private label products. Kohl’s, for instance, has seen a 5.1% decline in sales over the past four years, while private label sales have remained relatively flat [4].

In conclusion, the current state of the consumer industry presents unique challenges for companies like TreeHouse Foods. While private label sales have remained relatively flat, the economic environment and consumer preferences have contributed to a decrease in overall consumption. As retailers continue to navigate these challenges, the focus on offering quality products at affordable prices will be crucial for success.

References:
[1] TreeHouse Foods CEO Discusses Challenges in the Consumer Industry [https://www.ainvest.com/news/treehouse-foods-ceo-discusses-challenges-in-the-consumer-industry-2509/]
[2] Kohl’s Private Label Shows Relative Strength [https://retailwire.com/discussion/private-label-kohls-turnaround/]
[3] General Mills’ 2026 Strategy Balances Innovation and Affordability [https://www.ainvest.com/news/general-mills-2026-strategic-pivot-balancing-innovation-affordability-cautious-consumer-market-2509/]
[4] Kohl’s Inc. Second-Quarter Results [https://www.ainvest.com/news/kohls-inc-second-quarter-results-2509/]