A few months ago, we reported that Conagra Brands divested one of its snack brands to Utz Quality Foods. Recently, Conagra popped up on our newswire again with another divestment—Lender’s. The bagel business will be sold to Bimbo Bakeries USA, which had recently acquired another bagel business.
According to Conagra’s press release, the sale will involve the Lender's brand and related intellectual property; the production facility in Mattoon, Illinois; and inventory. This latest transaction will slim down Conagra’s Refrigerated and Frozen segment. Yahoo Finance states that the company has been notably exiting private-label brands and non-key businesses in order to reshape its portfolio by acquiring high-margin businesses and divesting the less profitable ones. The source continues that Conagra has also concluded the sale of its peanut butter manufacturing facility at the end of Q2 of fiscal 2020, effectively exiting its private-label peanut butter business.
Amongst the divestments, Conagra has also been profiting off of its previous acquisitions. The company strengthened its snacks division when it acquired Artisan Treats in 2017. Conagra further cemented its stance in the snacking and frozen foods arenas with the acquisition of Pinnacle Foods in October 2018. And based off of Conagra’s recent quarterly, the strategy is working.
Are there more sales in the future for Conagra? Keep reading Deli Market News as we continue to report on the latest.