ConAgra F1Q10 (Qtr End 8/30/09) Earnings Call Transcript

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2009-09-22 14:08:07.0

Tags: Call Transcript, Earnings, Gap, UBS AG, Sales Strategy, Sales Force Management, Food & Beverage, Sales, Manufacturing, Seeking Alpha, ConAgra Foods Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Our first question today comes from David Palmer with UBS.

David Palmer - UBS

Thanks. This is a question about your consumer foods division -- what do you believe was the all-channel consumer take-away sales growth for ConAgra products in the quarter, roughly? And to the degree that there was a gap, you’ve mentioned certain SKU rationalization and other factors but I suspect the gap is larger than what you said in the release. To the degree that there is a wider gap, how much do you anticipate that being an ongoing gap or perhaps reversing in future quarters? Thanks.

Gary M. Rodkin

David, you’re absolutely right. Our takeaway on consumer was greater than our shipments and we think that reflects on the depletion in inventory, both at the customer and the consumer level. It clearly was up across all channels. It was up in measured channels, as you saw. It was up in un-measured channels and I don’t know if we want to -- Chris, do we want to get into specific numbers?

Chris Klinefelter

No, we can -- however, we can let our listeners know that our performance outside of measured channels was also very strong. Our business at some of the big names that we usually get asked about was also very strong and I know you have some color that you would like to add on that.

Gary M. Rodkin

Yeah, there was meaningful difference in terms of takeaway being greater than our shipments for the quarter, so I think we feel very comfortable -- you know, that obviously that will meet at some point, that equilibrium will be reached at some point but the momentum in the business is very, very good.

David Palmer - UBS

And just one separate question on your re-launch of Healthy Choice and frozen, any specific learnings above and below target with regard to trial and repeat? If we were to separate that relaunch into trial and repeat, how did things go there in terms of getting the trial versus what you would try to achieve? And then in terms of repeat purchases, how is that coming in?

Gary M. Rodkin

On both fronts, very, very good. There is every sign that our innovation on Healthy Choice is going to lead to continued sustainable growth in that franchise, so the trial numbers are ahead of where we would like to see, as well as the repeat numbers.

 

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