ConAgra Foods Inc. said Wednesday that it has hired Gary Rodkin, former head of PepsiCo Inc.’s North American operations, to replace Bruce Rohde as chief executive, effective Oct. 1.
In his last job at PepsiCo, from which he resigned in June, Rodkin led a $10 billion organization with brands that included Pepsi, Gatorade and Quaker Foods.
ConAgra shares have dropped 33 percent since Rohde took over as CEO in September 1997. In the past two years ConAgra has shed workers and businesses to focus on retail brands, including Marie Calender’s entrees, Chef Boyardee pasta and Hebrew National meats.
“Like a top draft choice going to a last-place team, Mr. Rodkin will be challenged,” Credit Suisse First Boston analyst David Nelson wrote in a note to clients. Nelson said Rodkin “faces a much weaker and much more diversified portfolio.” ConAgra “primarily operates with third-tier brands in fairly commoditized categories,” whereas the brands Rodkin ran at Pepsi had “high market shares, high margins and growth.”
