Conagra Considers Selling Iconic Chef Boyardee Brand Amidst Changing Market Dynamics

Conagra Brands is exploring the sale of its Chef Boyardee brand, valued at over $500 million, as it adapts to slowing sales and inflation. The company aims to divest non-core assets and continues to innovate with new products and discounts to attract consumers.

Conagra Brands, the renowned producer of Slim Jim and Healthy Choice, is reportedly contemplating the sale of its iconic canned pasta line, Chef Boyardee. Sources indicate that investment bank Centerview Partners has been engaged to evaluate potential interest, with the brand's value estimated at over $500 million. Interested parties may include other food manufacturers and private equity firms, as discussions progress under confidentiality.

This strategic move comes in response to Conagra's challenging sales climate, exacerbated by inflation-induced consumer spending cutbacks. The company's stock has experienced a 16% slump in the past three months, bringing its market capitalization to $13 billion. In an effort to stabilize, Conagra has introduced new products, enhanced discounts, and moderated price hikes across its diverse food portfolio.

Originally launched in 1928 by Italian-American chef Hector Boiardi, Chef Boyardee became part of Conagra's product lineup following the 2000 acquisition of International Home Foods. Recent financial results reveal a 3.1% decrease in net sales for the segment over the past year, largely due to inflationary pressures. As Conagra refocuses its strategy, divesting low-growth, non-core brands such as Chef Boyardee is becoming a priority.

(With inputs from agencies.)