Conagra to invest US$125M to strengthen supply chain, improve manufacturing efficiency

USA – Conagra Brands will invest an additional US$125 million during its 2027 financial year to improve supply chain resilience, increase production within its own facilities and lower operating costs as it continues to modernise its manufacturing network.

The company said the funding will support efforts to maintain high customer service levels while reducing inventory and the number of days products remain in storage as part of a broader strategy to improve operational performance.

President and Chief Executive Officer John Brase said the company is increasing spending because additional investment is needed to strengthen both its brands and supply chain, adding that the business is focused on creating a more reliable and efficient operating model.

The latest investment follows Conagra’s decision last year to raise capital expenditure to about US$450 million during the financial year ended 31 May 2026 after several supply disruptions affected operations, including lower chicken production, shortages of frozen vegetables and higher costs linked to tariffs on tin coated steel used in canned food packaging.

The food manufacturer now expects annual capital expenditure to remain between 4% and 5% of net sales as it continues investing in projects designed to improve the long term performance of its supply chain.

Automation and product review

Alongside infrastructure improvements, Conagra is advancing technology and artificial intelligence initiatives intended to simplify manufacturing processes and improve efficiency across its production facilities.

The technology programme, known as Project Catalyst and introduced in December last year, focuses on redesigning and automating core business processes to improve productivity throughout the organisation.

Brase said reducing complexity will be a key priority for the company, explaining that simplifying operations and internal processes should make it easier to execute business plans more effectively.

As part of that effort, Conagra is reviewing its portfolio of approximately 5,500 stock keeping units to determine which products continue to deliver value and which may no longer justify their place within the business.

The company believes the review will help streamline operations, improve manufacturing efficiency and support more disciplined resource allocation across its product range.

Conagra’s latest investment comes as several major consumer packaged goods manufacturers pursue similar supply chain improvements to strengthen operations and reduce costs in response to changing market conditions.

General Mills recently announced plans to modernise its supply chain infrastructure, describing its existing network as one built for a lower production environment, while Procter & Gamble has completed the rollout of its Supply Chain 3.0 programme, which is designed to enhance manufacturing and logistics capabilities through digital technologies and automation.

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