ConAgra Foods has put its refrigerated meats business on the block and merged its retail and foodservice divisions into a single Consumer Foods unit.
The reorganization includes plans to move the Grocery Foods division from its long-time Irvine, CA, headquarters to suburban Chicago.
ConAgra is paring down its portfolio and reconfiguring divisions to concentrate on its strongest segments and drive sustainable growth.
“ConAgra Foods has a number of great brands and businesses to drive future growth. We will build on those strengths by coupling disciplined investments in well-positioned brands with a more streamlined operating structure,” said President-CEO Gary Rodkin in a statement.
The business for sale accounts for $1.9 billion in annual sales and includes Armour, Butterball and Eckrich brands sold to grocers as well as delis, restaurants and foodservice operations. The sale is expected to take 10 to 12 months. Luis Nieto, ConAgra’s current president-packaged meats and deli, will continue to run the business until it’s sold. Staffers on those brands may move with the business to its new owner, but ConAgra will cut shared-services staff once it pares its portfolio.
The sale won’t include Healthy Choice meats, Hebrew National, Brown ‘N Serve, Slim Jim or Pemmican. Omaha-based ConAgra cut a deal in late January to sell its Cook’s ham business to Smithfield Foods, Inc.
The company-wide revamp has shifted ConAgra divisions and senior management. ConAgra merges its Retail and Culinary Products divisions into a single unit, Consumer Foods, handling all retail and foodservice business in the U.S. and abroad for dairy, frozen, grocery, packaged meats and deli, snacks and store brands. Dean Hollis becomes president-COO of the division.
David Palfenier, who was president of Frozen Foods, becomes president of Grocery Foods, reporting to Hollis. Diane Teer, who was president of Culinary Products, becomes president of Frozen Foods, reporting to Hollis. Gregory Smith, who was president of Grocery Foods, becomes senior VP of supply chain.
Greg Heckman will serve as president-COO of ConAgra’s Commercial Products division, including Lamb Weston potatoes; ingredients brands ConAgra Mills, Gilroy Foods and Spicetec; seafood brands Louis Kemp, Meridian and Singleton; and the Trade Group division (trading, merchandising and risk management).
At the same time, ConAgra merges its culinary foodservice sales force into its retail sales force, with sales reps handling both retail and foodservice accounts. Doug Knudsen becomes president of the merged ConAgra Food Sales division.
Meanwhile, the Grocery Foods division, whose shelf-stable business includes Hunt’s Pam and Chef Boyardee brands, will shift its headquarters by June 1 to Naperville, IL to centralize shared services with ConAgra’s dairy and meats divisions.
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