Food Business News - April 19, 2016 - (Page 24)

"Our goal is to make sure we have you covered. You can trust that we are always working to exceed your expectations." - Sandy Kellogg and Jamie Wilson, Customer Service, Manildra Group USA ConAgra Foods earnings reflect focus on execution OMAHA - The reinvention of ConAgra "... In the second half of last fiscal year, Foods, Inc. continues as the company focus- we funded several major deep discount es on reviving brands in its Consumer Foods promotions, particularly in our frozen busibusiness and extending the reach of its Com- ness," Mr. Connolly said on April 7 during mercial Foods unit. a conference call with financial analysts. For the third quarter ended Feb. 28, "These kinds of deals can drive big spikes ConAgra Foods recorded in low-margin promoted net income of $204.6 milvolume. And given our delion, equal to 46c per liberate plan to reduce our share on the common reliance on deep discount stock, and an improvepromotions, and given the in millions ment compared with the promoted volume spikes third quarter of fiscal embedded in our year-ago 2015 $15,832.4 2015 when the company comps, we expected lowrecorded a loss of $954.1 er promoted volume." 2014 $15,843.6 million. The loss was reThe effort is part of the lated to the company's company's plan to rein2013 $13,469.3 Private Brands business, vent the Banquet brand as which was later sold to a line of products not reli2012 $11,420.9 TreeHouse Foods, Inc., ant on deep discounting to Oak Brook, Ill. drive sales. 2011 $10,746.0 Sales for the quarter "... Our work to restage were $2,924 million, flat the Banquet franchise Source: ConAgra Foods, Inc. compared with the previcontinues," Mr. Connolly ous year when sales totaled $2,907.3 million. said. "As I noted earlier, Banquet representThe Consumer Foods business recorded ed the vast majority of our volume decline in sales of $1.9 billion, down 2% compared the third quarter as we reduced our reliance with the same period the previous year, on deep discount promotion and raised our and an operating profit of $291 million. everyday shelf price above $1. Commercial Foods sales rose 6% to $1.1 "While we recognize it will take time to rebillion and generated an operating profit build the buying rate among households that of $175 million, a 21% increase compared are long accustomed to $1 Banquet, we are with the previous year. confident that the higher price points enable In the Consumer Foods business, volumes us to invest in product enhancements and were down 4% and Sean Connolly, chief ex- higher quality A&P (advertising and promoecutive officer, said 90% of the volume decline tion) that reeducates consumers about the may be attributed to changes the company is brand. Not all consumers will transition with making to its Banquet line of products. the brand and we are okay with that. But Net sales of ConAgra Foods worldwide 800-323-8435 24 FOODBUSINESS NEWS ® April 19, 2016

Table of Contents for the Digital Edition of Food Business News - April 19, 2016

Food Business News - April 19, 2016
Fresh, authentic a focus for Unilever
Clash over child nutrition programs may lie ahead
Dairy Business News - Dairy flavors grow ever more creative
Table of Contents
Web Contents
Editorial - Growth of organic category suggests still greater attention ahead
Monogram Foods acquires appetizer company
‘Premiumization’ opportunities abound
Preferred Popcorn picks up organic popcorn maker
Wal-Mart to transition to cage-free eggs by 2025
AdvancePierre Foods files for i.p.o.
Dr Pepper Snapple increases sports nutrition stake
Hormel Foods launches clean label effort
Identifying the X-factor in food startups
Food service operators betting big on buns
ConAgra Foods earnings reflect focus on execution
Mondelez to partner with e-commerce firm Alibaba
Modern Table planting the seeds of a trend
Market Insight - Dairy still under pressure
Company Profile - Flowers focused on improved margins
Flavor Trends - The next level for dressings, sauces and marinades
Ingredient Innovations - Fiber's global reach
Ingredient suppliers emphasize specialized fibers
Algae venture to invest in or buy food companies
New Food Products
Ingredient Market Trends - Large supplies will weigh on grain and oilseeds prices into next year
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - April 19, 2016