Conagra Cuts Earnings Outlook Due To Private Brand Business Unit Weakness

conagraOmaha, Nebraska based ConAgra Foods dramatically cut its full-year earnings outlook on Tuesday, citing continued weakness in its Private Brands business. ConAgra, now expects adjusted earnings of $2.22 to $2.25 a share for fiscal year 2014, which ends in May. Earnings for the third and fourth quarters are projected to be 60¢ and 65¢ a share, respectively, missing Wall Street expectations.

CEO Gary Rodkin stressed that ConAgra remains confident in its strategy to lift its private brands unit. The business was acquired through the $4.95 billion purchase of Ralcorp last year. “It is taking longer than expected to stabilize the performance of the private brands segment, which has been below plan because of pricing, sales force coverage, and customer service issues largely resulting from restructuring actions taken before we bought that business last year,” Rodkin explained.

 



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Christopher Durham

Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan).

Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s.
Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago.

Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.