Conagra Brands, a US food manufacturing giant, has announced plans to close its Birds Eye frozen vegetables facility in Beaver Dam, Wisconsin. The decision will affect all 252 workers at the site, as outlined in a WARN notice filed by the company on April 8. Conagra cited the need to enhance efficiencies and effectiveness within its supply chain network as the reason for shutting down production.
Production at the facility is set to cease by June 10, with warehouse operations expected to conclude around January 3, 2025. Of the workforce, 227 employees are involved in production and production support, while 25 work in management or administrative roles. Employee separations will occur in five phases, starting on June 10 and concluding on the warehouse closure date next year.
In related news, Conagra reported a 1.7% decline in third-quarter net sales to $3.03 billion, with organic net sales dropping 2%. Nine-month net sales also fell by 1.7% to $9.1 billion, and 1.9% organically. Third-quarter operating profit stood at $471.4 million, down from $490 million a year earlier. Adjusted operating profit was $498.4 million, compared to $522.3 million in the same period the previous year.
Following the second-quarter results, Conagra revised its annual net sales target downwards due to slowing consumer demand. The company expects annual net sales to decrease by 1-2% on an organic basis. CEO Sean Connolly revealed plans for a substantial investment in innovation, merchandising, and advertisement for 2024 in a bid to connect with consumers and drive growth.
