ConAgra buys maker of store-brand foods Ralcorp
ConAgra Foods has bought Ralcorp, maker of private-label packaged foods, for $5 billion. Credit: Bloomberg Paul Taggart
The deal announced Tuesday caps a year of acquisitions for ConAgra, which makes brands including Banquet, Chef Boyardee and Marie Callender's. The company, based in Omaha, also made multiple attempts to buy Ralcorp last year.
The latest bid for Ralcorp comes at a time when private-label brands -- also known as store brands or house brands -- are gaining popularity with price-conscious shoppers. Supermarkets and drugstores have also been working to improve the image of their brands as a way to control the rising costs for name brands.
In a conference call with analysts, ConAgra CEO Gary Rodkin said private-label products are growing at twice the rate of name brands and now account for 18 percent of the overall packaged food market.
In a new report this week, however, market researcher SymphonyIRI wrote that the growth of private label products has ebbed, and faces "pockets of growth," rather than a general expansion.
Separately Tuesday, Ralcorp attributed an 8 percent increase in net sales to acquisitions and higher prices, which offset lower volumes.
Ralcorp shares jumped $18.57, or 26.44 percent, to close at $88.80. ConAgra gained $1.34, or 4.74 percent, to $29.63.
'It's personal to me' The law would require businesses to have proper state licensing, prove that their employees are paid and ban staff from living at the spas or sleeping there overnight. Repeat offenders could face penalties up to $25,000. NewsdayTV's Shari Einhorn has more.
'It's personal to me' The law would require businesses to have proper state licensing, prove that their employees are paid and ban staff from living at the spas or sleeping there overnight. Repeat offenders could face penalties up to $25,000. NewsdayTV's Shari Einhorn has more.
