Conagra reports the end of its peanut butter private label

Inside its quarterly report, Conagra Brands, Chicago, revealed that it sold off a peanut butter manufacturing facility and has exited the private label peanut butter business.

On Nov. 25, after the end of the second quarter, Conagra completed the sale of its peanut butter manufacturing facility in Streator, Ill. The sale was part of a broader initiative to optimize the company's peanut butter business, which also included the decision to exit the manufacture and sale of private label peanut butter. 

Conagra estimated the annualized impact of the business closure from private label peanut butter to be a reduction in net sales of approximately $50 million and with no material impact to its adjusted operating profit.

Another interesting note from the quarterly report was the company divested its Direct Store Delivery (DSD) snacks business, previously disclosed on Oct. 21, and has completed the divestiture.

In all, the company reported sales gains of more than 18% compared to the year before and saw organic net sales increase by nearly 2%.