ConAgra Foods plans to exit private label

ConAgra Foods intends to divest its private label operations, including the ones from the bakery sector, and focus on a more aggressive cost-cutting strategy, growing the Consumer Foods segment and Lamb Weston. 

Conagra produces specialty potato, seasonings, blends, flavors, and bakery products, as well as consumer branded and private branded packaged food items, sold to restaurants, foodservice and commercial channels worldwide.

With an operating loss of USD 25 million, due to impairment and restructuring charges and a comparable operating profit down 30 per cent, the private label segment in ConAgra Foods’ portfolio has been struggling in the past years, which is why the move to divest it altogether is seen by the company as step to “prevent further distraction”.     

“As I have intensely studied the situation in our Private Brands operations over the last few months, it has become clear that the time and energy the company is devoting to the Private Brands turnaround represent a suboptimal use of our resources. To prevent further distraction, we are pursuing the divestiture of our Private Brands operations. Because the outcome of our strategic review for the Private Brands operations will influence our long-term financial outlook, we will wait until this process is complete before sharing long-term financial commitments”, said Sean Connolly, chief executive officer of ConAgra Foods. 

Related articles: 

ConAgra Foods announces Sean Connolly as new CEO, after Gary Rodkin retired
ConAgra Foods CEO, Gary Rodkin, Announces Intent to Retire