ConAgra scarfs up store brands with Ralcorp deal
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.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Penguins call up prized defensive prospect Pouliot
- Pittsburgh police break up customer fights over Air Jordan 11 shoes
- Undersized Beachum quietly excels at 1 of game’s pivotal positions
- Michigan State defensive coordinator a Pitt coaching candidate
- Steelers notebook: Polamalu, Taylor unlikely to play, Harrison ‘ready’
- Pitt: Football coach hire comes 1st, athletic director 2nd
- Penguins’ defensive depth proves valuable
- Pirates sign Corey Hart to 1-year deal
- Hotel building boom sweeps Pittsburgh region
- Real estate union: Howard Hanna buys Langholz Wilson Ellis
- Pitt’s acting athletic director is deft facilitator