TreeHouse Foods, Inc. (THS): Business Model Canvas [Dec-2025 Updated]

Honestly, you're looking at TreeHouse Foods, Inc. right at the most interesting inflection point: the pending $2.9 billion sale to Investindustrial. This isn't just a food company; it's a finely tuned machine built on high-volume, low-cost private label manufacturing, projecting net sales between $3.34 billion and $3.40 billion for 2025 by serving the biggest North American grocery retailers. To truly grasp the value being transferred, you need to see the mechanics-from their 26 production facilities to their aggressive cost-cutting aimed at boosting that projected $345 million to $375 million Adjusted EBITDA. Keep reading; we break down the nine essential blocks of this B2B powerhouse below.

TreeHouse Foods, Inc. (THS) - Canvas Business Model: Key Partnerships

You're analyzing the core relationships that underpin TreeHouse Foods, Inc.'s business as it transitions into a private entity. These partnerships are critical, especially given the pending acquisition and the ongoing operational focus on efficiency.

Major North American grocery retailers (e.g., Walmart, Kroger)

TreeHouse Foods, Inc. operates as the supply chain for its customers' brands, focusing on private-label snacking and beverage products for leading supermarkets and wholesalers across North America. This relationship-oriented approach is a cornerstone of the growth strategy.

The company has 26 production facilities across the United States dedicated to serving these retail partners.

Key aspects of these retailer relationships include:

• Collaborating to supply high-quality, affordable alternatives to branded food products.
• Focusing on product customization to meet unique retail partner demands.
• Working towards stable, multi-year agreements to secure volume and pricing.

For the three months ended September 30, 2025, TreeHouse Foods reported net sales of $840.3 million.

Strategic raw material and commodity suppliers

Managing relationships with commodity suppliers is vital, as evidenced by recent financial pressures. The company's Q3 2025 results showed net sales of $840.3 million, with the net sales change from the prior year reflecting favorable pricing to recover commodity inflation.

TreeHouse Foods, Inc. requires suppliers to adhere to mandatory standards, including its Code of Ethics and Food Safety and Quality (FSQA) Supplier Expectations Manual.

Specific supplier requirements focus on:

• Providing sustainable packaging solutions that are recyclable, recycled, compostable, or biodegradable.
• Disclosing efforts to reduce greenhouse gas emissions associated with production.
• Providing traceability and accounting documentation for high-risk ingredients upon request.

Ingredients deemed high risk requiring audit performance include palm oil, coffee, or cocoa. Suppliers of these items must be able to provide country of origin information.

Investindustrial (pending $2.9 billion acquisition partner)

The most significant partnership as of late 2025 is the definitive acquisition agreement with Industrial F&B Investments III Inc. (Investindustrial), announced on November 10, 2025.

Here are the key financial and structural terms of this partnership:

Metric	Value/Detail
Total Enterprise Value	$2.9 billion
Upfront Cash Per Share	$22.50
Premium to September 26, 2025 Close	38 percent
Contingent Value Right (CVR) Payout	85% of net proceeds from ongoing litigation
Expected Closing Date	First quarter of 2026

Upon closing, TreeHouse Foods, Inc. will operate independently within Investindustrial's portfolio. Following the deal, Investindustrial's North American portfolio companies will collectively operate over 85 manufacturing plants and employ 16,000 employees.

Co-packers for overflow or specialized production

While TreeHouse Foods, Inc. operates 26 production facilities and focuses on building internal capabilities, the need for external co-packing for overflow or specialized production remains an operational consideration to meet fluctuating demand.

The company has been actively working on supply chain initiatives, targeting $250 million in gross savings through plant consolidations and procurement improvements, which suggests a focus on maximizing internal capacity first.

Logistics and third-party distribution providers

Reliable logistics are essential for a North American manufacturer serving national retailers and regional distributors. TreeHouse Foods, Inc. maintains logistical capabilities to ensure efficient delivery and brand consistency.

Financial activity related to operations shows the scale of cash management required:

• Net cash used in operating activities for the first nine months of 2025 was $62.5 million.
• Net sales from customers outside of the United States were approximately 5% in 2024, with almost all occurring in Canada.

Finance: draft 13-week cash view by Friday.

TreeHouse Foods, Inc. (THS) - Canvas Business Model: Key Activities

You're looking at the core actions TreeHouse Foods, Inc. (THS) was focused on right before the acquisition closed in early 2026. The key activities centered on operational efficiency, category depth, and navigating a major ownership change.

High-volume, low-cost private label food manufacturing

The day-to-day grind involved keeping the production lines moving for private label snacks and beverages across North America. You see the results of this in their sales figures, even with macroeconomic headwinds. For the third quarter of 2025, TreeHouse Foods, Inc. reported net sales of $840.3 million, with adjusted net sales coming in at $841.9 million. That's up slightly, about a 0.1% increase year-over-year for the quarter. Still, volume/mix was a headwind, showing a (8.6)% drop for the third quarter of 2025. The gross profit margin, though, showed improvement, hitting 18.8% in Q3 2025, up from 15.6% in Q3 2024. Honestly, that margin improvement shows they were pushing hard on pricing and efficiency.

Here's a quick look at how the top-line and margin performance stacked up in the middle of 2025:

Metric (Period Ended Late 2025)	Q2 2025 Value	Q3 2025 Value
Net Sales	$798.0 million	$840.3 million
Adjusted EBITDA	$73.3 million	$91.6 million
Gross Profit Margin	17.4%	18.8%

What this estimate hides is that the Q3 2025 net loss was a massive $265.8 million, largely due to a $289.7 million non-cash goodwill impairment loss. That's a big number to swallow.

Supply chain optimization and cost reduction

Driving operational consistency and cutting costs were central to the strategy throughout 2025. TreeHouse Foods, Inc. implemented planned actions in April 2025 to achieve significant cost savings. These supply chain savings initiatives were cited as a primary reason for the increase in Adjusted EBITDA in Q2 2025 and the higher gross profit margin in Q3 2025. The full financial benefit of these actions was expected to be realized across Fiscal Years 2025 and 2026. For context, the company had reaffirmed its 2025 guidance before the acquisition announcement, targeting adjusted annual net sales between $3.34 billion and $3.40 billion, and adjusted EBITDA from continuing operations between $345 million and $375 million.

Product innovation and category management for retailers

The company focused on building depth in key categories, which included strategic moves like the acquisition of the Harris Tea business. The accretive margin impact from Harris Tea was noted as a positive driver for Adjusted EBITDA in Q2 2025 and Q1 2025. Furthermore, favorable pricing actions were a key activity to recover commodity inflation, contributing 6.5% to the net sales change in Q3 2025. The company also received $17.5 million in insurance recoveries related to voluntary product recalls in Q3 2025, which helped the gross profit margin.

Centralizing corporate support functions (eliminating ~150 roles)

To streamline organizational and cost structures, TreeHouse Foods, Inc. announced internal reorganizations in April 2025. This involved centralizing and reorganizing corporate support functions, which was projected to eliminate approximately 150 roles. Restructuring costs, primarily severance expense, were reflected in the Total Operating Expenses, which rose to $120.7 million in Q1 2025 from $117.2 million in Q1 2024, partially due to these actions. The departure of the Executive Vice President, Business President and Chief Commercial Officer, effective May 30, 2025, was also part of this move to absorb duties elsewhere.

Managing the transition to new ownership (Investindustrial)

The most significant activity in late 2025 was managing the definitive agreement to be acquired by Investindustrial. The transaction value was set at $2.9 billion in an all-cash deal. Shareholders were set to receive $22.50 per share in cash, representing an equity value of $1.2 billion. This was a 38% premium to the closing share price on September 26, 2025. The deal is structured to close in the first quarter of 2026. A unique part of the activity involved issuing one non-transferable Contingent Value Right (CVR) per share, which entitles holders to 85% of net proceeds from the ongoing antitrust litigation. The litigation, filed in February 2014, had estimated damages ranging from $719.4 million to $1.5 billion before trebling.

The acquisition means TreeHouse Foods, Inc. will delist from the New York Stock Exchange and operate independently within Investindustrial's portfolio, which upon closing, will have over 85 manufacturing plants and 16,000 employees in North America.

Finance: draft 13-week cash view by Friday.

TreeHouse Foods, Inc. (THS) - Canvas Business Model: Key Resources

You're looking at the core assets TreeHouse Foods, Inc. relies on to run its private-label manufacturing business as of late 2025. These aren't just things they own; they are the engines driving their strategy.

Network of 26 production facilities across the U.S.

TreeHouse Foods operates a significant physical footprint to support its manufacturing scale. This network is central to serving its broad customer base across North America.

• Network size: Approximately 26 production facilities.
• Geographic spread: Across the United States and Canada.
• Facility consolidation: The Company is actively implementing actions like consolidating NDC production into two existing facilities: Wayland, Michigan, and Pecatonica, Illinois.

Here's a snapshot of some of the locations that form this network, as listed in company materials:

Facility Location (State/Province)	Country
Cambridge	Maryland
Carrollton	Texas
Brantford	Ontario
Womelsdorf	Pennsylvania
Manawa	Wisconsin

Intellectual property for private brand formulations

The value here isn't in consumer-facing brands, but in the proprietary knowledge to develop and produce retailer-specific products efficiently. This is supported by dedicated internal capabilities.

• RDI Investment: TreeHouse Foods has invested in extensive Research, Design, and Implementation (RDI) capabilities.
• Market Penetration: Private brand market share in North America reached 25% year-to-date in 2025.
• Focus Categories: The company focuses on categories where private-label penetration is higher, including snacking and beverages.

Long-term supply contracts with major retailers

While specific retailer contract terms aren't public, the resource is grounded in securing the inputs needed to fulfill those retailer commitments. The structure of these input agreements helps manage cost volatility.

• Packaging Materials: Most packaging materials are purchased under long-term supply contracts.
• Ingredient Contracts: Ingredient contracts are generally sought with lengths between six and twelve months.

Financial capital for strategic investments and M&A (e.g., Harris Tea acquisition)

The ability to deploy capital for growth, like the recent tea business purchase, is a critical resource. This is supported by recent capital deployment strategies and balance sheet strength.

The acquisition of Harris Tea, finalized in early 2025, serves as a concrete example of capital deployment:

Metric	Value
Harris Tea Acquisition Price	Approximately $205 million
Financing Method	Primarily through cash reserves
Valuation Multiple (Net of Synergies)	Approximately 6.5x trailing-twelve-month adjusted EBITDA

Looking at broader capital allocation, TreeHouse Foods deployed $1.6 billion between 2022 and 2024 across key areas:

• Debt Paydown: 33% of deployed capital.
• Capital Expenditures and Growth: 31% of deployed capital.
• Acquisitions: 20% of deployed capital.
• Share Buybacks: 16% of deployed capital.

Experienced management focused on margin improvement

Management's focus on operational execution and cost control is a key intangible resource, directly impacting profitability metrics.

The results of this focus through the first half of 2025 show tangible progress:

Financial Metric (Q2 2025 vs Q2 2024)	Result
Adjusted EBITDA Margin	Improved by 20 basis points to 9.1%
Supply Chain Savings Contribution to EBITDA	$10.6 million
Full Year 2025 Adjusted EBITDA Guidance	$345 million to $375 million

Management is actively streamlining structures; for instance, organizational changes announced in April 2025 included the elimination of approximately 150 roles to drive operational efficiency. Finance: draft 13-week cash view by Friday.

TreeHouse Foods, Inc. (THS) - Canvas Business Model: Value Propositions

You're looking at the core promises TreeHouse Foods, Inc. (THS) makes to its customers and the market as of late 2025. These aren't just mission statements; they are backed by recent operational results, even amidst the pending acquisition by Investindustrial for $2.9 billion.

Lower-cost, high-quality private brand alternatives for consumers

The fundamental value here is offering consumers a compelling price gap versus national brands. This proposition is supported by the long-term trend of private label sales consistently gaining share over the last two decades. You see this reflected in the product mix, which spans crackers, pretzels, cookies, non-dairy creamer, coffee, and tea.

Strategic partner for retailers to grow their own-brand market share

For retailers, TreeHouse Foods, Inc. aims to be the preferred manufacturing and distribution partner, focusing on delivering excellent service and insights to drive mutually profitable growth. The strategy involves deepening relationships with North America's biggest food and beverage retailers to meet their private brand priorities. The market dynamic shows that increased retailer investment in private label has continued to drive unit share growth across the sector.

Simplified portfolio focused on high-growth categories (snacking, beverages)

The company has actively refined its focus, signaled by the strategic decision to divest its Meal-prep segment, which concluded in 3Q22. This streamlining allows for a deeper focus on high-growth areas. The acquisition of the private brand tea business, for example, contributed 4.3% to Q3 2025 net sales and brought favorable margins. The portfolio now solidifies its standing in the snacking and beverage segments.

Reliable, large-scale supply chain for diverse product categories

While the company historically operated across 29 product categories with about 40 production facilities across North America and Italy, the current value proposition centers on execution and efficiency within that scale. Supply chain savings initiatives were a noted offset to cost pressures in Q3 2025. The focus remains on building a world-class supply chain to support service levels for retail customers.

Margin management expertise to recover commodity inflation

You can see the direct result of margin management expertise in the pricing actions taken. For instance, the 0.1% year-over-year increase in Q3 2025 net sales was primarily driven by favorable pricing actions specifically to recover commodity inflation. This pricing power helped lift the Gross Profit as a percentage of net sales to 18.8% in Q3 2025, a significant jump from 15.6% in Q3 2024. The Adjusted EBITDA margin for Q3 2025 settled at 10.9%.

Here's a quick look at the Q3 2025 financial performance that underpins these value drivers:

Metric	Q3 2025 Value	Comparison/Context
Net Sales	$840.3 million	Flat year-over-year
Gross Profit Margin	18.8%	Up 3.2 percentage points from Q3 2024
Adjusted EBITDA Margin	10.9%	Indicates operational efficiency
Pricing Actions Contribution to Net Sales	6.5%	Key driver for revenue increase
Volume/Mix Impact on Net Sales	-8.6%	Reflecting softer consumption trends

The company's ability to drive margin improvement through pricing and supply chain savings is a clear value proposition, even as sales volumes fell 11.6% year-over-year in Q3 2025. The portfolio adjustments, like the Harris Tea acquisition, are designed to bolster the margin profile moving forward.

• The Harris Tea acquisition provided a 4.3% contribution to Q3 2025 net sales.
• Insurance recoveries related to product recalls contributed $17.5 million to Q3 2025 gross profit.
• The company withdrew its financial guidance due to the pending acquisition.
• Adjusted EPS for Q3 2025 was $0.43, missing the forecast of $0.57.

Finance: draft the pro-forma balance sheet impact of the Investindustrial transaction by next Tuesday.

TreeHouse Foods, Inc. (THS) - Canvas Business Model: Customer Relationships

You're a seasoned analyst looking at the core of TreeHouse Foods, Inc.'s (THS) value proposition-its relationships with its large retail and food service customers. This is a pure Business-to-Business (B2B) play, where the customer relationship is the asset, evidenced by the $2.9 billion all-cash acquisition agreement announced in November 2025 by Industrial F&B Investments III. That deal valued the company at $22.50 per share. The relationship focus is paramount, as customer concentration and consolidation is explicitly listed as a key business risk.

The entire structure is built around serving the private label trend, which saw its market share hit 25% in North America year-to-date in 2025. TreeHouse Foods, Inc.'s stated purpose is to engage and delight, one customer at a time, by delivering excellent service and building capabilities and insights for mutually profitable growth.

Dedicated account management for top-tier retailers

The relationship structure is inherently high-touch, given the B2B nature. While specific ratios aren't public, the focus on customer value is clear, especially considering the company's structure prior to the acquisition announcement. For instance, as of October 31, 2025, there were 50.5 million shares of common stock outstanding, representing the equity base supporting these customer-facing operations. The company's international sales, which would require dedicated management for those specific accounts, represented approximately 5% of net sales in 2024, mostly in Canada.

Strategic, long-term contract negotiations

Contractual strength is reflected in the ability to manage pricing through inflationary periods. In the third quarter of 2025, pricing actions provided a significant benefit of 6.5% to net sales, helping offset an 11.6% year-over-year decline in sales volumes. This pricing power is a direct result of successful negotiations with key retailers. The full-year 2025 guidance, before the acquisition news caused guidance withdrawal, anticipated pricing to contribute to the top line, with Q3 pricing expected to provide an approximately 4% benefit.

Collaborative product development and category insights

TreeHouse Foods, Inc. positions itself as a partner in category growth, not just a supplier. This collaboration is key to maintaining shelf space as private label penetration grows. The company's strategic focus is on faster-growing, higher-margin categories, which requires deep, shared insights with retailers. For example, the baked snacking category, which accounts for around 30% of net revenue, has a total addressable market (TAM) over $38 billion.

Focus on best-in-class service and fill rates

Service consistency is a non-negotiable for large retailers. In April 2025, TreeHouse Foods, Inc. announced planned operational enhancement actions specifically aimed at improving quality and service levels. The company's Q3 2025 results showed a significant volume/mix decline of 11.6% year-over-year, indicating that service or consumption challenges were present, which the operational enhancements were intended to resolve. The company's 2025 full-year guidance reaffirmed an expectation of at least $130 million in free cash flow, which is directly tied to efficient operations that support reliable service.

Direct B2B relationship with no significant consumer marketing spend

As a private label manufacturer, TreeHouse Foods, Inc. avoids the massive consumer marketing expenditures common to national brands. Its entire marketing budget is effectively channeled into B2B relationship building, operational efficiency, and product quality. The company's Q2 2025 adjusted net sales were $801.4 million, with an adjusted EBITDA margin of 9.1%, demonstrating that profitability is driven by supply chain execution and customer contracts, not consumer advertising.

The value derived from these customer relationships can be quantified by looking at the performance metrics that define the B2B exchange:

Metric	2025 Value/Data Point	Period/Context
Full Year 2025 Adjusted Net Sales Guidance (Midpoint)	$3.3875 billion	As of Q2 2025 guidance
Q3 2025 Adjusted Net Sales	$841.9 million	Actual, ended September 30, 2025
Q3 2025 Pricing Benefit	6.5%	Year-over-year contribution to net sales
Q3 2025 Volume/Mix Change	(11.6)%	Year-over-year decline
Full Year 2025 Adjusted EBITDA Guidance (Range)	$345 million to $375 million	As of Q2 2025 guidance
Q3 2025 Adjusted EBITDA	$91.6 million	Actual, ended September 30, 2025
Private Brand Market Share	25%	Year-to-date 2025

The company's focus on operational efficiency, including organizational changes announced in April 2025 to drive cost savings, directly supports the service promise to these key accounts. The entire business model hinges on these deep, direct relationships, which is why the pending acquisition is structured around a total enterprise value of $2.9 billion.

• Customer-facing purpose: Engage and delight - one customer at a time.
• Key structural risk: Customer concentration and consolidation.
• Investment to support relationships: Implementing actions to enhance quality and service levels in Q2 2025.
• Customer base served: Retail grocery and food service customers across the U.S. and Canada.

Finance: draft 13-week cash view by Friday.

TreeHouse Foods, Inc. (THS) - Canvas Business Model: Channels

You're looking at how TreeHouse Foods, Inc. (THS) gets its products-the private label goods-into the hands of consumers across North America. The scale of their operation is best seen through their top-line numbers, which give you a sense of the volume moving through these various routes to market.

Direct sales to major North American grocery retailers represent the core of the TreeHouse Foods, Inc. (THS) channel strategy. This is where the bulk of their business happens, supplying the store brands that sit right next to national labels on the shelves. For the third quarter of 2025, TreeHouse Foods, Inc. (THS) reported total net sales of $840.3 million. This direct relationship is crucial because private brands are a long-term fact in North America, with the dollar share of consumer-packaged goods (CPG) reaching approximately 25% in 2025.

The second major route involves wholesale distributors and food service operators. While TreeHouse Foods, Inc. (THS) focuses heavily on retail, this channel ensures coverage in segments where direct relationships are less efficient or where foodservice contracts are secured. The company's full-year 2025 adjusted net sales guidance was set in a range of $3.340 billion to $3.400 billion. This massive revenue base flows through a combination of direct retail and these other channels.

Regarding e-commerce platforms (e.g., Amazon) for private label distribution, this is an evolving part of the mix, supporting the direct retail channel by ensuring product availability online. While specific revenue percentages for Amazon aren't public, the overall strategy is to support the private brand growth that saw its dollar share rise from 17% in 2006 to 25% in 2025 across CPG.

Direct-to-store delivery (DSD) in some regions/categories is used selectively, likely where speed-to-shelf or specific retailer requirements dictate it, though the primary model leans on retailer distribution networks. The company is focused on operational execution, as seen in their Q2 2025 adjusted EBITDA of $73.3 million, which shows efficiency improvements across their entire distribution footprint.

Finally, for sales to Canadian customers, the prompt suggests this accounts for approximately 5% of net sales. This is a smaller, but important, geographic extension of their North American strategy. The company's Q1 2025 net sales were $792.0 million, giving you a baseline for calculating that international segment's contribution.

Here's a quick look at the financial scale underpinning these channel activities as of late 2025:

Metric	Value (2025 Data)
Full Year 2025 Adjusted Net Sales Guidance Midpoint	$3.370 billion
Q3 2025 Net Sales	$840.3 million
Q2 2025 Net Sales	$798.0 million
Q1 2025 Net Sales	$792.0 million
Full Year 2025 Adjusted EBITDA Guidance Range	$345 million to $375 million
Private Brand Dollar Share of CPG (2025 Estimate)	25%

The company's ability to manage volume/mix declines, expected to be approximately 1% year-over-year for the full year 2025, while relying on pricing to deliver an approximate 4% benefit in Q3 2025, directly impacts the realized value through these channels. You've got to watch how pricing flows through the direct retailer contracts versus the distributor agreements.

• Direct sales to major North American grocery retailers are the primary revenue driver.
• Wholesale distributors and food service operators provide necessary market breadth.
• E-commerce platforms support the private label distribution network.
• Direct-to-store delivery (DSD) is used selectively by category or region.
• Sales to Canadian customers are estimated at approximately 5% of total net sales.

Finance: draft 13-week cash view by Friday.

TreeHouse Foods, Inc. (THS) - Canvas Business Model: Customer Segments

You're looking at where TreeHouse Foods, Inc. actually books its sales, which is key to understanding their revenue stability. As a leading private brands snacking and beverage manufacturer in North America, their customer base is heavily weighted toward major retail channels. This focus means that relationships with large format stores are defintely critical to their top line.

Large-format grocery retailers (Walmart, Costco, Kroger)

The concentration risk here is real, as one customer dominates the revenue picture. As of December 31, 2024, 23.9% of consolidated net sales from continuing operations came from Walmart Inc. and affiliates. No other single customer accounted for more than 10% of consolidated net sales from continuing operations as of that date. The company continues to focus on providing best in class service for these retail customers throughout 2025. The updated full-year 2025 adjusted net sales guidance projects a range of $3.360 billion to $3.415 billion.

Mass merchandisers and club stores

This group, which includes the largest retailer mentioned above, is the core of the TreeHouse Foods, Inc. business. The overall strategy is built around supporting the private label offerings within these massive distribution networks. For the second quarter of 2025, net sales totaled $798.0 million, showing the scale of transactions with these partners. The company is focused on driving margin improvement and cash flow growth through improved execution with these key accounts.

Discount and value-focused grocery chains

TreeHouse Foods, Inc. explicitly states that private brands offer needed value to the consumer, which naturally aligns them with value-focused chains. While specific revenue percentages for this sub-segment aren't broken out, the company's entire premise rests on providing lower-cost alternatives to national brands. The acquisition of the private brand tea business, which closed in early January 2025, is expected to be accretive to Adjusted EBITDA in 2025, supporting their value proposition across categories.

Food service and industrial customers

The business model includes serving the food away from home channel, which falls under this segment. The customer mix aligns well with TreeHouse Foods current mix of business focused on retail and foodservice. For context on the geographic split of sales, customers outside of the United States accounted for approximately 4.9% of total consolidated net sales from continuing operations in 2024, with Canada making up about 4.0% of that total.

Consumers seeking value and quality in private brands (Millennials/Gen Z)

This group represents the end-user demand driving the entire customer segment strategy. The company is focused on categories where growth and private-label penetration are higher, such as snacking and beverages. The third quarter 2025 results showed gross profit as a percentage of net sales at 18.8%, an increase of 3.2 percentage points from the third quarter of 2024, partially driven by favorable margin from the Harris Tea acquisition, which supports the quality perception for these consumers.

Here's a quick look at the known customer and sales metrics:

Metric	Value	Period/Date
Largest Customer Concentration (Walmart)	23.9% of consolidated net sales	As of December 31, 2024
Net Sales (Q2 2025)	$798.0 million	Second Quarter 2025
Adjusted Net Sales Guidance (FY 2025 Midpoint)	Approximately $3.388 billion	Full Year 2025 Outlook
International Sales	Approximately 4.9% of total net sales	2024
Gross Profit Margin	18.8%	Third Quarter 2025

The company's focus on private brands is supported by operational execution, as seen in the financial performance:

• Net cash used in operating activities for the first nine months of 2025 was $62.5 million.
• Full Year 2025 Adjusted EBITDA is guided to be between $345 million and $375 million.
• The private brand tea business acquisition is accretive to Net Sales by roughly 4% in 2025.
• The company has more than 50 manufacturing facilities across the United States, Canada and Italy.

Finance: draft 13-week cash view by Friday.

TreeHouse Foods, Inc. (THS) - Canvas Business Model: Cost Structure

The cost structure for TreeHouse Foods, Inc. (THS) in late 2025 is heavily influenced by production inputs and significant one-time charges, even as operational streamlining takes place.

High cost of goods sold (COGS) from raw materials and manufacturing is a primary cost driver. For the third quarter of 2025, Net Sales totaled $840.3 million, against which the Gross Profit as a percentage of net sales was only 18.8%. This indicates that the cost of goods sold represented approximately 81.2% of net sales for the period.

The company recognized a substantial non-cash charge in the third quarter of 2025. The non-cash goodwill impairment loss amounted to $289.7 million in Q3 2025. This single item drove the Total Operating Expenses to $412.0 million in Q3 2025, a significant increase from $99.4 million in Q3 2024.

TreeHouse Foods, Inc. operates a network of 26 production facilities across the United States. These facilities represent a base of fixed costs that must be absorbed. Unfavorable fixed cost absorption due to declining consumption trends was cited as a partial offset to gross margin improvement in Q3 2025.

The company is actively engaged in initiatives to manage these costs. Selling, General, and Administrative (SG&A) expenses are currently being streamlined alongside broader cost control initiatives. In Q2 2025, improvements in SG&A and other factors contributed a positive $2.9 million to adjusted EBITDA year-over-year.

Significant investment in supply chain and operational efficiency initiatives is evident through reported savings. Supply chain savings of $10.6 million were a major driver of adjusted EBITDA performance in Q2 2025. Furthermore, the company is consolidating its manufacturing footprint, with expected cash costs associated with facility closures, such as the Chicago facility by the end of Q4 2025, estimated to be approximately $12 million.

Here is a snapshot of key financial metrics from the third quarter of 2025 that define the cost structure:

Metric	Amount (Q3 2025)	Context/Driver
Net Sales	$840.3 million	Top-line revenue base
Implied Cost of Goods Sold (COGS)	Approximately $681.52 million	Calculated from $840.3M Net Sales less 18.8% Gross Margin
Gross Margin Percentage	18.8%	Up 3.2 percentage points from Q3 2024
Non-Cash Goodwill Impairment Loss	$289.7 million	One-time charge impacting Net Loss
Total Operating Expenses	$412.0 million	Reflects impairment and restructuring costs
Manufacturing Facilities	26	Represents fixed asset base

The cost structure is also impacted by financing activities, as interest expense increased $7.9 million year-over-year in Q3 2025 due to higher borrowings on the Revolving Credit Facility.

Key elements driving cost control and efficiency efforts include:

• Supply chain savings initiatives contributing to margin expansion.
• Streamlining organizational structure, including eliminating approximately 150 roles.
• Planned consolidation of pickle and cookie capabilities into fewer facilities.
• Margin management actions, though these negatively impacted volume/mix.
• Cost reduction activities partially offsetting increased operating expenses in Q3 2025.

TreeHouse Foods, Inc. (THS) - Canvas Business Model: Revenue Streams

You're looking at how TreeHouse Foods, Inc. brings in the money, which is almost entirely through the sales of private label packaged foods and beverages. They focus on categories where private-label penetration is historically higher, like snacking, beverages and drink mixes, and aseptic goods. This model lets them offer customers lower prices by skipping the heavy marketing spend that national brands use.

Here's a look at the key financial targets for the full fiscal year 2025, based on the guidance TreeHouse Foods, Inc. provided:

Metric	2025 Projection/Target
Adjusted Annual Net Sales	$3.34 billion to $3.40 billion
Adjusted EBITDA from Continuing Operations	$345 million to $375 million
Free Cash Flow Generation	At least $130 million

The revenue engine for TreeHouse Foods, Inc. right now is definitely being driven by favorable pricing to offset inflation. You see this clearly in the quarterly results, where pricing actions are a major positive driver offsetting volume declines. For instance, in the third quarter of 2025, net sales increased by 0.1% year-over-year, largely due to that pricing strategy, even as volume/mix was down significantly.

To give you a clearer picture of what's moving the top line, here are the components that contributed to the change in net sales during the third quarter of 2025:

• Pricing provided a 6.5% benefit.
• Business acquisition added 4.3%.
• Product recall impact added 1.7%.
• Volume/mix was a drag, falling 8.6%.
• Planned margin management actions reduced sales by 3.0%.

The company is still focused on generating cash, targeting free cash flow of at least $130 million for 2025, alongside the projected Adjusted EBITDA from continuing operations between $345 million and $375 million. Finance: draft 13-week cash view by Friday.