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

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. Healthy safety Mitchell is eager for 2nd season with Steelers
  2. Knoch secures 1st WPIAL title by defeating defending champion West Allegheny
  3. Late goal gives Riverhounds victory over Tampa Bay in U.S. Open Cup
  4. Emergency crews search Youghiogheny River in Layton for Charleroi man
  5. One man found dead when fire sweeps through South Fayette apartment
  6. NFL notebook: Vikings coach delivers ultimatum to Peterson
  7. Pirates use big 7th inning to sweep Marlins, stretch winning streak to 6
  8. Plum teacher, held for trial, vows to fight witness intimidation charge
  9. Steelers notebook: Blake gets outside shot in nickel
  10. Central Catholic downs Norwin to win 1st WPIAL baseball title
  11. Ex-Blackhawk star pitcher McKay thriving on mound at Louisville