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ConAgra Foods, Inc. Message Board

  • dbb508 dbb508 Jun 26, 2014 7:41 PM Flag

    Blame Game

    Interesting reading Rodkin's comments about Ralcorp. Ralcorp knew what they were doing in the Private Label business. I don't believe Conagra understands that business. It is a much different animal than branded.
    It is going to be difficult to blend the branded and private label business. The retailers will start asking them to manufacture some of their brands under their private label banner. If they do it it will erode their brands and if they don't do it the retailer might send them packing. They have some difficult times ahead.

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    • Perhaps you can also explain why you think the private label business is so different (and apparently more difficult to navigate) than the branded product business?

    • It will be better for CAG to cannobalize their own sales tahn to allow a third party to cannibalize them, don;t you think?

      Yes, it is a different business, but only in a pencil-pushing way of thinking.

      It uses the same factories to produce the product, and the same trucks to distribute it to the same customers.

      Clearly, they did not have a good M&A team working on this and they overpaid.

      Still, the shares are cheap here not compared to other food names, but even just compared to CAG's NORMAL degree of undervaluation.

      aa

    • Cag already does make private label products in the canning side like Walmart ,dollar store and the generic supermarket brands in pasta products. They make some bad decisions on products they own thinking the profit margins would be better but now they find out its not the case example the chef Boyardee situation. Recipe changes and can lid changes were made against market analyst suggestions. Its costing millions and I think some people should be shown the door and there are a bunch responsible.

 
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