NEW YORK -- ConAgra thinks there are ways to keep big brands from turning into dinosaurs.
Sean Connolly, who took over as CEO of ConAgra Brands last year, notes that the company had simplified the ingredients for Chef Boyardee and has offered more contemporary flavours for Healthy Choice. He also cited plans for an almond milk variety of Reddi-wip next year.
ConAgra's sales have been declining, but the company says that's to be expected as it moves away from offering heavy discounts. The company says such changes lead to a short-term drop, but boost profit margins over time.
Here's what Connolly had to say about President Donald Trump, changing ideas about health and "The Bachelor" in a recent interview, edited for length and clarity.
Q: What potential policy changes under President Trump could affect ConAgra?
A: Tax reform clearly is at the top of the list. As a predominantly U.S. company, we pay a pretty high tax rate. Anything that the new president could do to foster a more pro-growth environment is clearly beneficial to us.
There's a lot of talk around trade policy. That's less of an issue for us, because we don't really have any substantial international businesses.
Q: The FDA is reevaluating the criteria for when "healthy" can be used on labels. How does that affect ConAgra?
A: ConAgra has a long history of working very collaboratively with the government around some of these definitions.
Healthy Choice was created by our former CEO in the 1980s after he had a heart attack. We're one of the few brands that has the word "healthy" in its trademark. We were allowed to do that by collaborating with the government on the standards for that product.
But back in the '80s, health and wellness was all about the absence of negatives. It was about low sodium, low fat content, low sugar. Now, health and wellness is about the presence of positives, as much as the absence of negatives.
Q: So how are you adapting Healthy Choice?
A: We're launching a line called Power Bowls that have positive, nutritious ingredients.
Healthy Choice is a story of three businesses. The smallest piece of the Healthy Choice franchise is the legacy business that's left over from the 1980s, with entrees like meatloaf and Salisbury steak. These are aging boomers. It's a declining business and it's a business we've been migrating out of for the last five years.
The bigger part of Healthy Choice is Healthy Choice Cafe Steamers and Healthy Choice Simply Steamers. They're much more contemporary.
Q: Why does ConAgra consider Reddi-Wip a growth product?
A: Whipped topping is a strong category. In the old days, people would use it at Thanksgiving and Christmas, and they'd put it on top of a pumpkin pie. Now, they'll put it on top of their coffee in the morning, they'll put it on top of hot chocolate, they'll put it on top of a cupcake, they'll put it on top of their ice cream for a treat.
We're trying to contribute to Reddi-Wip being a product people use every day.
Part of the game plan is to get more households to use it. But probably a bigger part of it is to get what we call a higher buying rate. Instead of just buying it a couple times a year for infrequent use, you make it part of your weekly habit.
Q: How do you get more households to use it?
A: The strategy is communicating how the simple choice of adding Reddi-wip to an eating occasion can add some fun and joy to an otherwise mundane part of your day. That is what the marketing world would call communicating an emotional benefit.
Q: What are unusual things people can add it to?
A: Well, it was on TV this week.
(John Harris, company spokesman: Yes, "The Bachelor.")
A: We were on CNBC yesterday, and as I was leaving the air, the anchors were talking about how they just squirt it directly in their mouth.
Q: How was it featured on The Bachelor?
A: It was kind of a salacious moment. We don't market that strategy. But it gives you perspective on how this is a brand that's showing up in a ubiquitous way in people's lives.
(The company says it did not pay for the product's appearance on the show).
