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Conagra Brands To Invest In Information Technology

08/09/2022

Conagra Brands intends to invest in digital resources to enhance productivity and reduce cost.  The current Company supply chain includes 42 plants and 25 distribution centers with 5,000 products responsible for 80 percent of sales volume. Conagra will rationalize production and distribution and merge facilities acquired from Pinnacle Foods. This will result in a reduction in the number of distribution centers.

 

Conagra expects to save $1 billion over the proximal three years through updating the supply chain applying their Fuel For Growth program.  Through digitization, management will be able to make data-driven decisions and adjust capacity in plants to improve efficiency and reduce the cost of goods sold.  Conagra anticipates a saving of $300 million in manufacturing costs alone.  The benefits will be derived from an increase capital expenditure to five percent of net sales compared to the current baseline of 3.5 percent.  The emphasis of investment will be directed to growth and productivity.