Conagra Brands' new CEO is preparing to make “bold decisions” to turn around performance at the Slim Jim maker, which he says has been slowed by a complex portfolio and a failure to invest enough in growing the company’s on-trend snack and frozen offerings.
John Brase, a former J.M. Smucker executive who stepped into the top role at Conagra roughly 45 days ago, wasted little time implementing change at the 107-year-old Chicago company. In one of his first media interviews, he told Food Dive the company needs to move aggressively on simplifying its portfolio.
The Orville Redenbacher and Healthy Choice manufacturer announced Wednesday it was slashing its dividend in half, spending more money on its brands and supply chain and undertaking a thorough review of its portfolio that could lead to divestitures. For its 2027 fiscal year, organic net sales are forecast to decline between 1% and 3%, after slipping 0.4% in the prior year.
“We’re not happy where we are today,” Brase said in an interview. “You can expect more bold actions from us so we can get back to winning.”
Conagra, which posted $11.3 billion in net sales during its 2026 fiscal year, enters with an enviable position centered around snacking and frozen, two categories that are popular with today’s consumer. But Brase, who has spent much of his early tenure as CEO talking to customers, analysts and employees, admitted Conagra has a “very large, complex” portfolio and there are opportunities to “simplify” its brand offerings and the company as a whole.
Conagra will focus first on slimming down its roughly 5,500 SKUs before devoting more attention to determining which brands it could divest.
“Our ability to focus on fewer SKUs and fewer brands really allows us to unlock the full potential of those businesses,” he said. “We’re beginning to review the portfolio now. That’s going to take some time to get there.”
Brase said he also expects acquisitions to play a role in reshaping Conagra’s portfolio, but dealmaking in the near-term is likely to focus on smaller “bolt-on” purchases. Conagra has long prioritized paying down its debt, which Brase says is necessary before engaging in more “meaningful acquisitions.”
The food sector has been hit hard by changing trends, an influx of competition from scrappy upstarts and a pullback in spending by cash-strapped consumers. Just last week, PepsiCo said high gas prices are causing shoppers to spend less on its snacks and beverages.
Brase acknowledged the difficulties that continue to plague the consumer, but said Conagra's portfolio is diverse enough to connect with shoppers regardless of their financial situation.
“I love food. It matters to consumers,” said the CPG veteran of more than 35 years. “The opportunity to come here – this is a place, this is a company that has a tremendous runway in front of it.”
Analysts welcomed the steps taken by Brase and Conagra this week, but took a wait-and-see approach for signs the company’s business is improving.
“While we view the company as setting the correct priorities and taking prudent actions, we see little … that suggests near-term fundamentals are improving,” BNP Paribas Equity Research senior analyst Max Gumport said in a report.
Conagra said net sales during its fourth quarter rose 3.6% to $2.9 billion as the company benefited from an extra week. Sales in its grocery and snacks category rose 0.3% to $1.2 billion, while refrigerated and frozen food revenue increased 5.3% to $1.2 billion.
