OAK BROOK, ILL. – TreeHouse Foods, Inc. is struggling to keep pace with demand. Supply chain challenges ranging from a lack of labor to logistics problems have put the company in a difficult position.
“Our service levels overall are still in the 90s, but certain categories have been under more pressure and the inherent complexity of private label will continue to pressure our service levels,” said Steven T. Oakland, president and chief executive officer, during a Nov. 8 conference call to discuss third-quarter results. “Nearly all of our Meal (Preparation) categories are currently on allocation, a clear sign that orders are outpacing our disrupted capacity.
“As certain federal stimulus programs expire, we are seeing signs of private label recovery, while at the same time, we are winning new business with existing customers.”
The private label manufacturer is raising prices and investing to meet demand. But the lag in…