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Tuesday, June 30, 2015

ConAgra Foods to exit struggling private label business, (NYSE: CAG)

ConAgra Foods Inc, the maker of Slim Jim beef jerky and Chef Boyardee pasta, said it planned to exit its struggling private label foods business as it seeks to boost profit margins and focus on its faster growing consumer foods segment. ConAgra Chief Executive Sean Connolly, who joined in April, said on the company's earnings call on Tuesday it was clear trying to turn around the private label business was draining resources and that the segment would likely attract significant interest from potential buyers.ConAgra bought Ralcorp in 2013 to become the biggest maker of U.S. private label foods. The business has been plagued with problems ranging from customer service issues to pricing concessions, with sales falling nearly 6 percent in two years."We know that the inconsistency of our past performance is totally unacceptable," Connolly said.

ConAgra Foods, Inc. (ConAgra Foods) is the packaged food company. Shares of CAG traded higher by 1.1057% or $0.4802/share to $43.91. In the past year, the shares have traded as low as $29.62 and as high as $44.31. On average, 3208300 shares of CAG exchange hands on a given day and today's volume is recorded at 3264643.