Some well-known brands with good market positions; Product diversification within packaged food; and Broad market penetration in the U.S. Moderate leverage for the rating category; Exposure to volatile commodity costs; and The highly competitive nature of the packaged foods market with modest growth opportunities. The ratings on Omaha-based ConAgra Foods Inc. reflect its diverse portfolio of well-known packaged food brands and good geographic coverage in the U.S. Historically mixed operating performance, moderate leverage, and difficult market conditions temper these strengths. ConAgra has refined its business portfolio over time through divestitures of lower margin and commodity-oriented business lines and modest-size acquisitions to focus on branded, value-added areas. Still, ConAgra generally competes in low growth categories with above-average private label market share.
