Conagra to remove artificial colors from frozen products by year-end

CHICAGO - Conagra Brands, Inc. (NYSE:CAG) announced Wednesday it will complete the removal of certified Food, Drug & Cosmetic colors (FD&C colors) from its U.S. frozen product portfolio by the end of 2025.

The food manufacturer also plans to discontinue FD&C colors in products sold to K-12 schools by the beginning of the 2026-2027 school year and aims to eliminate these artificial colors across its entire U.S. retail portfolio by the end of 2027.

"Conagra Brands is known for innovating delicious, on-trend foods, and our transition away from FD&C colors is just one aspect of our broader strategy to modernize our portfolio to align with consumer preferences," said Tom McGough, executive vice president and chief operating officer of Conagra Brands.

The change will affect Conagra’s frozen brands including Birds Eye, Healthy Choice, and Marie Callender’s.

This initiative is part of the company’s broader portfolio modernization strategy that focuses on meeting evolving consumer preferences for products supporting health and wellness goals. Earlier this year, Conagra introduced an "On Track" badge on select Healthy Choice products, indicating items that are high in protein, low calorie, and a good source of fiber. The company’s commitment to long-term value is evidenced by its impressive 50-year streak of maintaining dividend payments, currently offering a 6.52% yield.

Conagra Brands, headquartered in Chicago, reported fiscal 2024 net sales exceeding $12 billion. The company’s announcement was made in a press release statement. With net income expected to grow this year, detailed financial analysis and additional insights are available through InvestingPro’s comprehensive research reports, which cover over 1,400 US stocks.

In other recent news, Conagra Brands announced the sale of its Van de Kamp’s and Mrs. Paul’s frozen seafood brands to High Liner Foods for $55 million. This transaction, expected to close by the end of July 2025, is anticipated to slightly reduce Conagra’s fiscal year 2026 adjusted earnings per share by one cent. Goldman Sachs recently downgraded Conagra’s stock from Neutral to Sell, citing concerns over margin pressures due to tariffs and rising input costs. The firm set a new price target of $21, down from $26, and expects the company’s fiscal year 2026 guidance to fall short of consensus estimates.

Meanwhile, UBS initiated coverage of Conagra with a neutral rating and a $22 price target, noting a balanced risk-reward profile despite challenges in organic growth. TD Cowen also adjusted its outlook, lowering the price target to $20.50 and highlighting Conagra’s structural concerns, including supply chain disruptions and lack of pricing power. Additionally, Conagra announced that board member Fran Horowitz will step down at the 2025 Annual Meeting of Shareholders. These developments reflect ongoing adjustments and strategic decisions as Conagra navigates the current economic landscape.

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