ConAgra's Sales Fall, Supporting Plan to Revive Food Brands
- CEO Connolly is shedding private-label, commercial operations
- Revenue from consumer foods segment slips 2.9 percent
ConAgra Foods Inc., the maker of Chef Boyardee pasta and Orville Redenbacher’s popcorn, posted second-quarter sales that trailed analysts’ estimates, reinforcing the need for Chief Executive Officer Sean Connolly to focus on reigniting growth in the company’s household brands.
Connolly, who has faced pressure from activist investor Jana Partners, has begun to transform ConAgra since taking the helm in April. He has announced the sale of ConAgra’s struggling private-label business and the spinoff of Lamb Weston, which accounts for the majority of sales from the company’s commercial-foods unit. The moves will leave Connolly free to try to revive sales of ConAgra’s branded foods, which also include Healthy Choice frozen meals and Swiss Miss cocoa.