Time to modernize
The maker of Chef Boyardee and Banquet frozen meals is trying to modernize its lineup of products and reverse years of declining sales.
ConAgra Brands says its sales fell 10 percent for its latest fiscal year as it worked on reshaping its business. The efforts include acquiring more on-trend products like Duke’s meat snacks, while also updating brands like Healthy Choice to better reflect how people are eating now.
In addition, ConAgra is getting rid of less-profitable products and cutting back on promotions to try to command higher prices in general. CEO Sean
Connolly says he’s encouraging the development of products with higher profit margins. The company says it wants 15 percent of revenue to come from new products by 2020.
ConAgra isn’t the only big food company making such changes. Others such as Campbell Soup and Hormel are also trying to update their offerings to include products that seem fresher or healthier.
Still, it’s a work in progress at ConAgra, with the Chicago-based company forecasting sales will be flat to down 2 percent for its next fiscal year. That could mark the fourth straight year of declining sales.