ConAgra Foods has insisted its US consumer foods have remained rational, despite this morning (25 March) posting volumes growth that outstripped dollar sales due to higher promotional spending.

The company, which manufactures brands including Banquet and Hunt’s, has posted third-quarter sales growth of 2.2% at its consumer foods unit. However, volumes at the business were up 3% as ConAgra increased its investment in promotional activity.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Nevertheless, speaking to analysts during a conference call, consumer foods president André Hawaux said that the company’s promotional activity and discounting initiatives had not dented margins or resulted in lower prices in the categories in which the company operates.

Hawaux indicated that the lion’s share of ConAgra’s promotional spending has been in support of new product launches, rather than discounting established products to retain market share.

“We have a very robust product development pipeline,” he said.

While Hawaux admitted that there had been “some softness” in the frozen category, he claimed that ConAgra’s investments in innovation coupled with its promotional activity behind product launches had resulted in “good momentum”. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“In frozen, we have invested in coupons behind new products, such as the Steamers and Naturals line,” he revealed. “In our case, we have seen very good repeat rates.”

“The fundamentals for growth are good for us in frozen,” he emphasised.

While US retailers have focused on offering lower prices in order to retain traffic during the downturn, Hawaux said that ConAgra’s categories had remained relatively rational and dismissed concerns that the group is under pressure to reduce its prices and increase promotions.

“The environment has been fairly steady in most categories. We continue to see fairly consistent levels of promotional activity at price points we are comfortable with,” he said.