Conagra Brands to Review Non-Core Assets as Part of Revamp

Conagra Brands (CAG) laid out a plan to streamline operations, including reviewing its non-core assets, as the packaged food company seeks to restore margins and invest more aggressively in supply chains. Chief Executive John Brase, who joined the company on June 1, announced the restructuring initiative Wednesday, alongside fiscal fourth-quarter results. Shares of Conagra Brands have fallen nearly 18% year to date. Conagra is targeting a leaner operating structure that focuses on core brands, Brase said in prepared remarks. The company will explore strategic options for non-core units, he added. "I believe that we have operated with a portfolio that is too large and too complex for too long," Brase said. "We have significant opportunities to simplify, and I'm taking the time to do a detailed review with our teams to understand where we have the right to win." Inflation and an emphasis on volume gains have impacted margins, the new CEO said. Conagra will target productivity gains and price hikes, particularly across its frozen portfolio, to combat inflation and restore margins. The company plans to raise advertising spending by 14% this year, prioritizing frozen meals and.