Conagra Brands has decided to discontinue its Celeste frozen pizza line as part of a strategic effort to streamline its portfolio and simplify its operations in light of sluggish sales due to reduced consumer spending.
The company is currently evaluating other SKUs that could be eliminated and brands that could be divested. This review process is ongoing, with the majority of the anticipated benefits expected to be realized over the next 12 to 18 months. Read more
CEO John Brase mentioned that Conagra currently offers over 400 single-serve meal SKUs and reducing this number would result in an optimized assortment that can drive sales for the most impactful products.
Brase stated, “There are certain brands and categories where we simply don’t see a future. It makes sense to exit those unprofitable or low-profit brands as soon as possible.” Learn more
While divesting some SKUs and brands, Conagra plans to invest more in other areas of its business. Exiting the Celeste frozen pizza line will allow the company to focus its resources on brands and categories with greater scale and growth potential.
Conagra intends to increase its investment in meat sticks and popcorn, two segments where the company holds a strong market position. Brase emphasized that these investments are crucial for driving growth in these important business areas.
Brase, a former J.M. Smucker executive, expressed his commitment to making bold decisions to improve the performance of Conagra’s brands like Orville Redenbacher and Healthy Choice. He acknowledged that the company’s complex portfolio and lack of investment in trending snack and frozen offerings have hindered growth.
Conagra also sees an opportunity to better communicate the value of its brands to consumers, especially during a challenging period of reduced spending. The company recognizes the need to adapt to changing consumer preferences for healthier, less processed food options.
The company recently projected a decrease in organic net sales for the 2027 fiscal year, following a slight decline in the previous year. Despite facing challenges from consumers, Conagra is planning to increase prices on select frozen foods and other products, which may impact sales volume.