TreeHouse Foods, Inc. (NYSE:THS)

SpinningFree (95.99) Submitted: 3/2/2011 11:57:43 AM : Start Price: $51.49 THS Score: +11.60

There are three really good reasons I see to buy this company:

1) They play in a growing industry. Private Label is growing at a faster clip than branded consumer packaged goods, and with good reason - people with less money to spend start to make the switch. Once consumers switch to private label it's hard for them to go back, and more and more people are coming to private label. Seeing that the % of goods sold on private label in the US is nowhere near that of Europe, I think there is lots of room to grow here. Private Label has very strong loyalty, particularly when the quality is just as good as a branded product - which takes me to point #2:

2) Attention to quality. THS prides itself on making high-quality goods, which can still undercut the pricing of branded products because they work off the 'store brand' label - with no money put behind marketing, they can still sell goods to stores on the cheap, and generally speaking the margins are higher for the stores carrying the goods when compared to branded. As I said earlier, if they buy a THS product, they are less likely to jump ship if they are satisfied with the quality at a low price point.

3) Growth strategy. Their biggest business, pickles, is slow growth but a major cash cow. This helped them build a strong balance sheet with lots of cash coming in and zero debt. So what do they do with that extra cash? Purchase other small Private Label businesses in rapidly growing sectors, and make them more profitable than they were before by using their scaled distribution chains - and continuing to pay attention to quality, so that the recurring revenue keeps coming in.

So there you have it. Great strategy for growth in a growing sector of CPG's, and a focus on what counts - keeping the customer buying your product by delivering on expectations.

girlcowboy3 (29.76) Submitted: 7/22/2010 4:27:48 PM : Start Price: $46.43 THS Score: -6.55

As the grocery bill gets higher the more store brand items I buy. Soups, sauces, condiments all can be use without much difference in taste. Sauce can have added spices and cheese to make the taste more appealing. The average consumer will cut back in some area before others, store brand items in the food area is more acceptable than store brand personal care items but everyone has their own tastes.

meidab0y (< 20) Submitted: 8/24/2009 11:31:44 AM : Start Price: $37.58 THS Score: +22.74

We all need food but will not pay a premium for fancy labels -- strong balance sheet and will acquire some more brands soon

georcole (81.69) Submitted: 7/19/2009 4:52:18 PM : Start Price: $29.93 THS Score: +49.40

I work in one of the largest grocery store chains in the northeast. Right now the company I work for is trying very hard to push the store brand items. I know that they have all been trying for years, but the company is pushing even harder now. The company wants us to go from appx. 15% of total sales being store brand to 25%. I don't know that they can make that kind of an improvement, but it should still be quite large. They make a significantly larger profit off of these items. So even if they sell fewer items, they can still make more money. If the company that I work for is doing this, you can bet our competition is as well. TreeHouse Foods makes a lot of store brand items, and as such will profit from this new initiative that I'm sure most of the major grocery chains are doing as well.
Also with the economy in the dumps right now, a lot more people are going to be buying store brand in order to make their money go farther. I believe that this current economy is going to have a lasting effect on people's spending habits, similar to the Great Depression. As long as store brands are comparable, and they are getting better all the time, people will try to save a little money. That's great news for THS.

82882 (68.77) Submitted: 7/15/2009 7:35:44 PM : Start Price: $29.06 THS Score: +52.58

People have been punished financially til they are now bargain hunters.

Sarotu (93.88) Submitted: 2/19/2009 8:10:15 PM : Start Price: $27.90 THS Score: +27.69

Walmart.

edejeu (81.90) Submitted: 2/19/2009 7:27:58 PM : Start Price: $27.90 THS Score: +27.69

Economy is poor as we all know. When you shop are you shopping by brand name or by price??? Think about the person(s) who lost their jobs, name or price??

richardrogers4 (67.22) Submitted: 12/17/2008 10:06:32 AM : Start Price: $24.70 THS Score: +79.71

Defensive private label food play.

NWTOGME (< 20) Submitted: 6/16/2008 7:02:53 PM : Start Price: $25.78 THS Score: +121.12

Short significant sales boost

Mulkey6841 (81.12) Submitted: 8/6/2007 9:09:19 PM : Start Price: $24.66 THS Score: +136.10

Cramers luv child!

MARBAY (36.07) Submitted: 6/15/2007 11:47:23 PM : Start Price: $28.56 THS Score: -108.98

this stock maybe good till the end of summer then the holidays yet in the long run. may not be that good. with most people starting think more about what they put into their bodies. the ingredients, the want of a better tasting healthier high end product. may not be a good buy in the long run.

reverema (94.51) Submitted: 12/14/2006 10:26:19 PM : Start Price: $32.95 THS Score: +74.55

Leader in sector.

ballyvary (< 20) Submitted: 11/21/2006 7:09:01 AM : Start Price: $32.10 THS Score: +77.50

good company