Jana tells Lamb Weston it has received ‘overwhelming’ support for change

JANA Partners, which together with its strategic and operating partners, owns more than 5% of Lamb Weston (LW) Holdings and is one of the company’s largest shareholders, sent a letter to the company’s Board of Directors. “The Board’s recent decision to double down on a broken status quo, after already subjecting shareholders to years of systemic failures across nearly all key dimensions of operating the business, highlights just how detached the Board is from the urgent need for wholesale change at Lamb Weston,” the letter reads. “We are therefore writing to inform the Board of the shareholder feedback we have received and the overwhelming support for significant Board and leadership change… Our discussions with investors and other stakeholders have revealed a staggering level of frustration and loss of confidence in Lamb Weston’s Board and leadership. We summarize below the feedback from roughly 70% of the top 70 Lamb Weston shareholders who participated in an independent shareholder perception study. These views – both quantitative and qualitative – loudly echo what investors have told us directly. While the ratings for nearly all key areas including leadership, operational execution and capital allocation were extremely weak, product quality stood out in sharp contrast and was nearly a 10 – highlighting how severely the Company has squandered its leading market position and reputation… Put simply, after more than $6bn4 of value destruction, shareholders are done with ‘business as usual’ and are clamoring for dramatic change at the Company. If the Board remains unwilling to adopt the necessary Board and leadership changes needed to remediate Lamb Weston’s issues, JANA is committed to providing shareholders with an alternative to the status quo at the Company’s 2025 Annual Meeting: highly qualified and engaged new directors who will oversee improved execution and capital allocation and ensure the right leadership team is in place and is held accountable to investors. JANA has a multi-decade reputation of working constructively with boards to drive change and improve performance, and our offer to work constructively with Lamb Weston continues to stand. We and our team of highly regarded industry executives remain prepared to immediately join the Board and help rehabilitate the Company and drive long-term value. If, however, the Board remains unwilling to adopt the significant changes needed to repair the Company, Lamb Weston should pursue a sale transaction.”