Conagra Brands announced that long‑time chief executive officer Sean Connolly will step down and that John Brase, the former president and chief operating officer of J.M. Smucker, will become president and chief executive officer effective June 1, 2026. Brase brings more than 35 years of consumer‑packaged‑goods experience, including a 30‑year tenure at Procter & Gamble where he led the North America Family Care business, and a recent role as president and COO of Smucker, positioning him to guide Conagra through its ongoing transformation and debt‑reduction plan.
Conagra’s recent financial results illustrate the challenging market conditions that prompted the leadership change. In the second quarter of fiscal 2026, the company reported a net loss of $664 million, driven by goodwill impairments, while net sales fell 6.8% to $3.0 billion and gross margin contracted 313 basis points to 23.4%. The third quarter, ending March 2026, saw net sales of $2.79 billion, slightly above analyst expectations, but adjusted earnings per share of $0.39 missed the $0.40 consensus and declined 23.5% year‑over‑year, with gross margin contracting 112 basis points to 23.7% due to cost‑inflation pressures.
Segment performance highlights the mixed picture across Conagra’s portfolio. The Grocery & Snacks and Refrigerated & Frozen segments both experienced sales declines in Q2 FY2026, reflecting broader consumer shifts toward healthier and value‑oriented products and the impact of cost‑push inflation, including tariffs on steel and aluminum that increased packaging costs. In Q3 FY2026, the Refrigerated & Frozen segment posted a 3.6% jump in organic net sales, yet overall adjusted gross margins still contracted, underscoring the persistent pressure on profitability.
Management emphasized confidence in the company’s strategic direction. “John’s track record of driving top‑ and bottom‑line performance, building brands across multiple consumer‑packaged goods categories, leveraging advantaged business systems and leading inclusive, results‑driven cultures is exceptional, and we are confident Conagra will thrive under his leadership,” said Richard H. Lenny, independent chair of Conagra’s board. Brase added, “I plan to build on Conagra’s track record of driving strong revenue growth, strengthening margins and generating robust cash flow to unlock the full potential of its brands and deliver meaningful value for consumers and shareholders.”
The transition signals a deliberate succession plan aimed at reinforcing Conagra’s focus on frozen foods and snacks while accelerating its transformation agenda. By appointing a CEO with deep operational expertise and a proven record of margin improvement, the company seeks to navigate inflationary headwinds, competitive pressures, and evolving consumer preferences, and to execute its debt‑reduction strategy with renewed vigor.
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