First, shoppers squeezed by inflation
began ditching name-brand snacks and drinks in favor of lower-price store brands. But now, with costs for coffee, eggs and other basic grocery items surging, consumers are cutting out many cheaper items as well. That has TreeHouse Foods, one of the country’s largest manufacturers of private brands, feeling the pinch.The maker of cookies, crackers, coffee and other goods for retailers such as Walmart, Whole Foods, Trader Joe’s and Target, gained ground in recent quarters as inflation pushed shoppers into cheaper food options. With sales growth now slowing significantly, TreeHouse is working to protect its margins by slashing costs and fine-tuning its list of products, anticipating that shoppers will remain stretched, at least for now.
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