#USA #Chicago #Conagra Brands #Van de Kamp's #Mrs. Paul's

Conagra Brands Reshapes Portfolio Through Seafood Divestiture

Conagra Brands, Inc. (NYSE: CAG) has made a significant decision to streamline its business operations by selling its popular frozen seafood brands, Van de Kamp's and Mrs. Paul's, to High Liner Foods. This divestiture, announced on June 6, 2025, is valued at $55 million and marks a strategic move aimed at refocusing Conagra's investments and enhancing its core offerings in the frozen foods sector.

A Strategic Move

According to Sean Connolly, the president and CEO of Conagra Brands, this sale reflects the company's ongoing commitment to reshaping its portfolio, aiming to concentrate its efforts on areas demonstrating the greatest potential for growth and innovation. The deal includes the transfer of all associated intellectual property and inventory related to Van de Kamp's and Mrs. Paul's, but notably excludes any employees or manufacturing facilities associated with these brands.

The frozen seafood segment has historically been a robust contributor to Conagra's sales, with the Van de Kamp's and Mrs. Paul's lines generating approximately $75 million in net sales for the fiscal year 2024. However, as the company adapts to changing market conditions and consumer preferences, this divestiture allows for a sharper focus on its core frozen offerings, which include other well-known brands like Birds Eye, Healthy Choice, and Marie Callender's.

Brand Strengths

Van de Kamp's and Mrs. Paul's are well-established brands within the U.S. frozen breaded and battered seafood category. They offer a diverse range of products, from crispy battered fillets to breaded fish for sandwiches, tacos, and classic fish sticks. This variety caters to consumers seeking convenient meal solutions and aligns with contemporary food trends focusing on quality and taste.

Financial Implications

The financial impact of this transaction is anticipated to be a minor adjustment, with an expected effect of approximately ($0.01) on Conagra's adjusted earnings per share for the fiscal year 2026. The proceeds from the sale will primarily be allocated to reducing the company’s debt, reinforcing its balance sheet as it pursues further growth opportunities.

The transaction is expected to close by the end of July 2025, which will coincide with a continued commitment by Conagra to invest in its core product areas and to foster significant innovation within its remaining brands.

About Conagra Brands

For those unfamiliar, Conagra Brands, Inc. is one of North America’s largest branded food companies. With over a century of history, the firm emphasizes a commitment to producing quality food while maintaining agility and focus on innovation. The brand portfolio is diverse and continuously adapting to meet changing consumer preferences. Notable brands within its lineup include Duncan Hines, Reddi-wip, and Angie's BOOMCHICKAPOP.

As Conagra Brands advances its efforts toward a more streamlined and innovative brand portfolio, the divestiture of Van de Kamp's and Mrs. Paul's seems poised to enable the company to redirect its attention to its core frozen food offerings while remaining responsive to consumer demands in the evolving marketplace.

With this strategic decision, Conagra Brands is clearing the path for a refreshed focus on growth, innovation, and a deeper connection to its core consumer market, promising a vibrant future ahead for both the company and its remaining brands.