Conagra Brands invested $15 million in supply chain costs during Q3 of fiscal year 2021 to adequately service consumer demand, the company disclosed on an earnings call. This meant “aggressively seeking out every available truck and adjusting how we ship to customers,” said David Marberger, executive vice president and chief financial officer.
“COVID has provided a period of significant elevated consumer trial of our brands and our innovation has outperformed expectations, allowing us to gain share with existing and new consumers,” said Marberger. “Investing to keep product on shelves to support this momentum and to support our retail customers while they manage tighter inventory levels was an easy business decision for us. While we expect demand to remain elevated for the foreseeable future, we believe we will be in a position to start rebuilding inventory over the next two quarters, which we believe will start removing the need for these incremental investments.”
Related: Report: Conagra May Sell Hebrew National Brand; Conagra Facilities Named Zero Waste Champions.
Image: Conagra Brands