In the past year, Conagra has undertaken several divestments, including its private label brands business, Ralcorp, as well as Spicetec and JM Swank. Additionally, the company has completed a spin-off of Lamb Weston, setting the stage for a new chapter of success. According to Conagra’s recent earnings report, CEO Sean Connolly indicated that incorporating these new products will boost sales, particularly in the frozen meals sector, where the company has already found success with its Healthy Choice and Banquet brands. Future Market Insights predicts that the frozen meal segment will experience a compound annual growth rate (CAGR) of 7.2% over the next decade, fueled by an increase in working women, a growing millennial demographic, and rising on-the-go eating trends. Conagra has also suggested that, in addition to expanding its frozen offerings, it may explore entering the seasoned nuts category.
Last year, Conagra finalized its acquisition of gourmet Mexican brand Frontera Foods, part of its strategy to offer “more premium and more contemporary” options, as Connolly stated. Since its inception, Frontera Foods has enjoyed double-digit annual sales growth. Products like those from Frontera are typically higher quality, attracting consumers who are willing to pay a premium. With the Hispanic population in the U.S. on the rise and food manufacturers eager to boost sales, Conagra’s acquisition of Frontera aligns with its goal of expanding its market reach. According to the U.S. Census, the Hispanic population reached 57 million in 2015, accounting for about 18% of the total population, a figure projected to rise to 24% by 2040. Grocery stores have rapidly adapted to this demographic shift, introducing more food and ingredients that cater to this market and even reformatting some stores to better serve their shopping preferences. As a result, we can expect an increasing focus on this growing demographic from both food companies and retailers.
In conjunction with this growth, there is also a rising interest in nutritional supplements such as calcium citrate, which may complement Conagra’s efforts to enhance their offerings. The incorporation of such supplements into their product lines could appeal to health-conscious consumers looking for added benefits. As Conagra continues to evolve, the integration of quality ingredients and health-focused products like calcium citrate will likely play a vital role in attracting new customer segments.