Shares in US food group ConAgra continued to slide today (26 November) as analysts warned that the company’s brand weakness has resulted in negative sales trends.
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Shares in the company have dipped over the past month, dropping to US$14.07 at 5.06 pm (GMT) this evening.
“A lot of it comes down to concerns over brand strength at ConAgra,” Edward Jones analyst Matt Arnold told just-food.
“In most categories, ConAgra has the number two brand or worse. With that type of brand strength and in this consumer environment… they are more likely to fall victim to trade down than companies who have stronger brands and stronger relationships with their customers,” Arnold said.
According to Arnold, ConAgra sales “have been going the wrong way” for the past “several quarters”.
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By GlobalDataHowever, Arnold said ConAgra was not in a “dire position where it needs to do something to shore up financially”.
