ConAgra cuts outlook as inflation outpaces its price hikes

FILE - A bag of Birds Eye sweet peas is displayed Thursday, March 25, 2021, in a New York supermarket. Inflation is pressuring ConAgra Brands' performance and the food company is lowering its fiscal full-year adjusted earnings outlook as it contends with higher-than-anticipated cost pressures. ConAgra, whose brands include Birds Eye, Slim Jim and Reddi-wip, also said Thursday, April 7, 2022, that it will need to make additional price increases to deal with the current environment. (AP Photo/Mark Lennihan) FILE - A bag of Birds Eye sweet peas is displayed Thursday, March 25, 2021, in a New York supermarket. Inflation is pressuring ConAgra Brands' performance and the food company is lowering its fiscal full-year adjusted earnings outlook as it contends with higher-than-anticipated cost pressures. ConAgra, whose brands include Birds Eye, Slim Jim and Reddi-wip, also said Thursday, April 7, 2022, that it will need to make additional price increases to deal with the current environment. (AP Photo/Mark Lennihan)

By MICHELLE CHAPMAN / AP Business Writer April 7, 2022 2 min read

ConAgra cut its outlook for the year with inflation outpacing the price hikes put into place by the major food producer.

The cost of goods increased 10.1%. during the quarter and on Thursday, the Chicago company said it expects full-year gross inflation to be approximately 16% compared with its previous guidance of 14%.

Another round of price increases will be needed, the maker of Birds Eye, Slim Jim and Reddi-wip said Thursday.

“We experienced higher-than-expected cost pressures as the third quarter progressed and expect those pressures to continue into the fourth quarter, particularly in certain frozen, refrigerated, and snacks businesses,” said CEO Sean Connolly. “In response, we have taken steps to implement additional inflation-driven pricing actions.”

Global inflation is hitting consumers hard as prices rise for essential goods like fuel, housing and food. An inflation gauge that is closely monitored by the U.S. Federal Reserve jumped 6.4% in February from last year.