TribLIVE

| Home

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

ConAgra scarfs up store brands with Ralcorp deal

Email Newsletters

Click here to sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

'American Coyotes' Series

Traveling by Jeep, boat and foot, Tribune-Review investigative reporter Carl Prine and photojournalist Justin Merriman covered nearly 2,000 miles over two months along the border with Mexico to report on coyotes — the human traffickers who bring illegal immigrants into the United States. Most are Americans working for money and/or drugs. This series reports how their operations have a major impact on life for residents and the environment along the border — and beyond.

By The Associated Press
Wednesday, Nov. 28, 2012, 12:01 a.m.
 

NEW YORK — ConAgra Foods is set to become the nation's biggest maker of store-brand foods, with a $5 billion purchase of Ralcorp that expands its stake in the growing market for cereals, crackers and other packaged foods sold under private labels.

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, made multiple attempts to buy Ralcorp last year.

The latest bid for Ralcorp occurs at a time when private-label brands — also known as store brands or house brands — are gaining popularity with price-conscious shoppers. Supermarkets and drug stores have 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 noted that 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 “hit a proverbial glass ceiling.”

Ralcorp shares jumped $18.59, or 26.5 percent.

, to $88.82 in Tuesday afternoon trading. ConAgra gained $1.40, or 5 percent, to $29.69.

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Stories

  1. McCullers’, McLendon’s prowess in clogging trenches crucial to Steelers defense
  2. Rossi: Looking at the next great Steeler
  3. Steelers swap draft pick for Eagles cornerback
  4. Shell shovels millions into proposed Beaver County plant site
  5. Penguins not alone in top-heavy approach to salary cap
  6. After early criticism, Haley has Steelers offense poised to be even better
  7. Reds solve Cole, stave off Pirates’ 9th-inning rally
  8. Starting 9: Examining Pirates’ deadline decisions
  9. Pirates notebook: New acquisition Happ more than happy to fill spot in rotation
  10. Inside the Steelers: QB Jones continues to get majority of snaps
  11. Biertempfel: Players, MLB agree logic of season’s setup needs to be examined