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Conagra Brands, Inc. (CAG - Free Report) recently enhanced the Pam brand’s portfolio with the launch of two fresh varieties of PAM Spray Pumps. This move is in sync with the company’s innovation-based growth strategy.

What’s New?

Extra Virgin Olive Oil and Canola Oil are the two new additions to Conagra’s legendary Pam Spray Pump’s family.  

Pam Spray Pumps offer state-of-the-art non-stick cooking experience and can be used for various culinary purposes, such as grilling and baking. PAM Baking, Original PAM Cooking Spray and Coconut Oil Cooking Sprays are some key products offered by this brand.

PAM Spray Pumps helps to controlling the usage of oil and butter while cooking, thereby lowering the calorie content in food. Notably, these sprays do not have artificial flavors, colors or preservatives.  

Conagra mentioned that these two fresh varieties are currently available in all mass retailing and grocery outlets of the United States.

PAM Spray Pumps are now available at grocery stores and mass retailers nationwide.

Our Take

The Food — Miscellaneous industry is highly competitive and witnesses significant propensity of new business entrants. Conagra, Nomad Foods Limited (NOMD - Free Report) , Associated British Foods PLC (ASBFY - Free Report) and Danone (DANOY - Free Report) are some major companies dominating this industry. In order to become the leading branded food company in the market, Conagra has been steadily strengthening its competency on the back of several inorganic moves and strategic product innovations.

For instance, in Sep 22, 2017, the company inked a definite agreement to acquire Angie's Artisan Treats, LLC, for an undisclosed amount. The deal, likely to close by the end of this calendar year, will likely drive the company’s growing snack business. On the other hand, the company is also divesting its low-margin businesses (J.W. Swank and Spicetec Flavors & Seasonings businesses spin-off in July 2016), in a bid to boost its near-term profitability.  These moves are anticipated to drive Conagra’s margin growth by nearly 32% by the end of fiscal 2020.

Also, by launching several on-trend products, Conagra has been augmenting its market-demand share. For instance, introduction of the aforementioned PAM Spray Pumps or the latest Power Bowls rolled out under the Healthy Choice (May 2017) will likely fuel Conagra’s aggregate sales, going forward.

However, lower volumes, unfavorable price/mix or adverse foreign currency translation impact might continue to weigh over the company’s Grocery & Snacks, Refrigerated & Frozen, and Foodservice, and International segments’ sales in the quarters ahead. Also, we believe price inflation of major raw inputs such as soybeans, pork, oats, beef, poultry, wheat and corn might hurt Conagra’s near-term margins. In addition, intense rivalry in the industry might mar its near-term top- and bottom-line performance as well.

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