TreeHouse (THS) Boosts Coffee Business With Northlake Facility
TreeHouse Foods, Inc. THS has made a bold move in the coffee market with its recent acquisition of Farmer Brothers Company's FARM Northlake, TX, coffee facility and non-Direct Store Delivery coffee business for approximately $100 million. This strategic acquisition further solidifies TreeHouse Foods' position as a leading player in the private-label snacking and beverage industry, while also propelling its presence in the thriving coffee sector.
The acquisition brings the state-of-the-art Northlake facility into TreeHouse Foods' portfolio. The facility boasts cutting-edge capabilities in roasting, grinding, flavoring and blending. Built in 2017, this facility perfectly complements TreeHouse Foods' existing single-serve pod and ready-to-drink coffee businesses, allowing the company to expand its private-label coffee offerings across multiple categories.
Previously, Farmer Brothers served as a bulk ground coffee supplier to TreeHouse Foods for its single-serve pods and ready-to-drink beverages. With this acquisition, TreeHouse Foods aims to capture greater profit in the coffee supply chain. The company will retain approximately 180 team members from Farmer Brothers to support operations at the facility. This move reinforces TreeHouse Foods' commitment to maintaining strong customer relationships while bolstering its in-house capabilities.
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By expanding its coffee portfolio and diversifying its offerings, TreeHouse Foods is strategically positioned to tap into the growing consumer demand for private-label coffee products. With the addition of the Northlake facility, TreeHouse Foods can now offer a comprehensive range of private-label coffee options, from bagged whole bean and ground coffee to pods and ready-to-drink beverages. This increased category depth strengthens the company's competitive advantage and positions it for further success in the evolving coffee market.
Wrapping Up
The acquisition highlights TreeHouse Foods' commitment to innovation and growth. The buyout strengthens the company’s position in the coffee market. We note that shares of this Zacks Rank #3 (Hold) company have rallied 18.5% in the past year compared with the industry’s growth of 5.8%.
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Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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