Not long ago a grain miller, then a branded marketer, ConAgra is transforming itself again with the 2013 acquisition of private label powerhouse Ralcorp.
ConAgra Foods Inc. has undergone several transformations in its 94-year history. It was simply a grain miller, Nebraska Consolidated Mills, until 1971 when a visionary CEO charted a new course for the company, changed its name and began acquiring branded products. The new ConAgra defined the better-for-you products category when it created the Healthy Choice brand in 1988. With the acquisition of Ralcorp, ConAgra is transforming again, into the nation's largest private brand manufacturer - without neglecting the more than 45 brands that have brought it to this point.
"We understand how consumer behavior is changing," says Gary Rodkin, CEO since 2005. "We know people want great-tasting, everyday food for every dollar they spend. And we don't think this particular consumer mindset is going away - value is here to stay. Initially, the industry reacted slowly to this sea change in consumer behavior, thinking that things would go back to normal as the economy improved. But it soon became apparent there was a 'new normal,' and we realized we were at that proverbial fork in the road."
Food Processing tells the story of ConAgra in a three-part series:
-- Part 1 talks to CEO Gary Rodkin and other executives about the
transformation they brought about since Rodkin's arrival in 2005.
-- Part 2 focuses on the unconventional product development team - they
call it RQI, for Research, Quality and Innovation - headed by EVP Al
Bolles.
-- Part 3 examines ConAgra as a manufacturer. With the fold-in of former
Ralcorp facilities, the company now operates 131 facilities, including
more than 100 packaged food plants.
To be named a Processor of the Year, a food manufacturer should have sound financial performance, innovative product development, leading manufacturing technology, managerial excellence, general industry leadership and service.
