Conagra Navigates Potential $200M Tariff Hit, Bolsters Supply Chain

Conagra Brands will need to tackle several cost headwinds in fiscal year 2026 due to the challenging global trade environment, inflationary pressures and supply chain constraints. 

According to the company’s recent earnings conversations, tariffs alone are projected to add approximately 3% to the company’s cost of goods sold, totaling more than $200 million annually.

It will also have an anticipated impact on the company’s canned food products, as the rising costs are primarily driven by tariffs on steel and aluminum. While Conagra said the majority of its manufacturing is domestic, tariffs on some imported goods such as palm oil, cocoa and other ingredients will also contribute to the financial hit.

Also: How Nike is navigating a $1 billion tariff impact

In response, the company has established a cross-functional task force to mitigate the impact of tariffs through alternative sourcing, cost savings initiatives and targeted pricing actions. Conagra expects to mitigate an estimated 1% of the 3% tariff impact, with further pricing strategies providing an additional cushion in the second half of the fiscal year.

Overall, the company expects total inflation to reach 7% for the year, with the five-year cumulative net inflation reaching around 45% — a historic amount over such a short period of time, according to president and CEO Sean Connolly.