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Conagra Brands has finalised the sale of its 51.8% ownership stake in Agro Tech Foods Limited (ATFL), as part of its ongoing strategy to streamline its portfolio and enhance shareholder value.
The transaction marks the completion of all necessary conditions for the divestiture by one of Conagra's subsidiaries.
With this sale, Conagra will no longer consolidate ATFL's financial results, which could impact its overall financial reporting and future strategic decisions.
The company has been actively reshaping its business model to adapt to shifting consumer preferences and competitive pressures within the food and beverage sector.
Agro Tech Foods, based in India, is known for its diverse range of products, including snacks and health-focused food items.
The divestiture aligns with Conagra's broader goal of focusing on its core brands, which include Birds Eye, Duncan Hines and Healthy Choice, among others.
The decision to divest comes amid a backdrop of increasing demand for innovation and agility in the food industry, as manufacturers seek to respond to evolving consumer tastes.
At the beginning of August, Conagra also acquired Sweetwood Smoke & Co, the maker of Fatty Smoked Meat Stick.
Speaking about the purchase of Sweetwood Smoke, Sean Connolly, president and CEO of Conagra Brands, stated that the acquisition is another step in reshaping Conagra’s portfolio for faster growth. “Adding a premium brand such as Fatty to our growing, better-for-you snack portfolio is consistent with our strategic focus on the snacking and frozen categories,” he said.
In fiscal 2024, Conagra reported net sales exceeding $12 billion.
The company’s strategic moves reflect a growing trend among food manufacturers to reassess their portfolios in light of market dynamics and investor expectations.
Image: © Conagra Brands
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