Lamb Weston, a leading player in the food and beverage industry, has appointed Jan Craps, a veteran from AB InBev, as its first executive chair. This strategic move aims to bolster the company’s leadership and performance in a competitive market.
Craps, who brings over 20 years of experience from the world’s largest brewer, will officially join Lamb Weston on February 6. In its announcement, the company stated that Craps would focus on unlocking growth and enhancing governance, particularly regarding board leadership, mergers and acquisitions, and their long-term strategic execution.
Alongside this, Lamb Weston has also appointed Jim Gray, a former executive at PepsiCo, as its new Chief Financial Officer. This change in leadership comes amid mounting pressure on the company’s profitability, particularly as recent declines in restaurant traffic have negatively impacted sales.
Further complicating matters, activist investor Jana Partners has publicly criticized Lamb Weston, alleging “self-inflicted missteps.” In October 2024, they acquired a stake in the company and advocated for transformative changes, even suggesting the possibility of a sale.
Following this, Lamb Weston promoted Mike Smith to president and CEO, a decision that faced skepticism from Jana Investors. However, in June of the previous year, the company made important adjustments to its board that received praise from the activist firm.
In an effort to enhance profitability, Lamb Weston outlined plans to secure “at least” $250 million in savings through its “Focus to Win” strategy. This initiative aims to focus on prioritizing markets and strengthening customer partnerships.
Upon announcing the appointments of Craps and Gray, Smith expressed confidence in their experience, stating, “The experience and vision Jan and Jim bring to Lamb Weston will be critically important as we execute our Focus to Win strategy.”
For the fiscal year ended May 25, Lamb Weston reported a 51% decline in net income, totaling $357.2 million, with adjusted net income down 35%. Despite these challenges, net sales remained stable at $6.45 billion. During the first half of its new fiscal year, which concluded on November 24, net sales slightly increased by 1% to $3.27 billion, although adjusted profits fell by 8%.
Looking ahead, Lamb Weston forecasts net sales between $6.35 billion and $6.55 billion for fiscal 2026, alongside an adjusted EBITDA of $1.00 billion to $1.20 billion. The company has reaffirmed this guidance, indicating a commitment to improve its standing within the food and drink business.
Craps conveyed his enthusiasm for the role, saying, “I have a strong admiration for Lamb Weston as one of the premier foodservice companies in the world.” He looks forward to collaborating with Smith to harness the existing growth opportunities in this dynamic sector.
In upcoming governance changes, Chairman Bradley Alford is set to transition to the role of lead independent director. Gray will assume the CFO position on April 2, succeeding Bernadette Madarieta, who will continue with the company in an advisory capacity.
By embracing these strategic appointments, Lamb Weston positions itself to adapt to evolving food and drink consumer trends while enhancing its operational efficiencies in the competitive food and beverage landscape.
