Kellogg Company (K), Kraft Foods Group Inc (KRFT): Are Investors Worried About ConAgra Foods, Inc. (CAG) Earnings?

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One key to ConAgra Foods, Inc. (NYSE:CAG)’s long-term success is its private-label partnerships with grocery chains and other food retailers. Yet an incident involving a brand of cookie dough it produces for The Kroger Co. (NYSE:KR) led to a recall, as ConAgra mistakenly put peanut butter cookie dough in packages labeled for chocolate chip cookie dough, raising concerns that those with peanut allergies could be at risk of adverse reactions. Private label food has given ConAgra an important edge over top packaged-food provider Kraft Foods Group Inc (NASDAQ:KRFT), especially given the interest among groceries to offer them in efforts to boost their own margins. Any quality control issue could be devastating to ConAgra’s results.

In the ConAgra Foods, Inc. (NYSE:CAG) earnings report, watch for the breakdown between branded products and private-label sales. If a disparity between the two major segments comes through, it could point the way toward a potential new strategy for ConAgra to follow to boost overall growth.

The article Are Investors Worried About ConAgra Earnings? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned, either.

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