Conagra ranks as the third-largest frozen foods producer in North America, and Connolly highlighted that single-serve meals dominate this market segment. To rekindle consumer interest, the company has partnered with notable brands like Frontera and P.F. Chang’s, but it must also ensure that its older clientele continues to return while laying the groundwork for future expansion. The company’s second-quarter earnings report revealed a 29% increase in quarterly profits; however, its gross margins and 2018 profit projections fell short of expectations. Like other major packaged food companies, such as General Mills and Kellogg, Conagra is grappling with sluggish demand as some U.S. consumers shift towards what they perceive as fresher and healthier options over frozen, processed foods.
At the same time, convenience and taste are crucial for both millennials and older consumers. Conagra is targeting millennials with trendy offerings like a protein meal “Power Bowl” infused with ethnic spices, while also catering to older customers with classic items such as Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This dual strategy appears effective, as Connolly reported a 4.8% increase in sales over the past 13 weeks, with a notable 7.8% rise in the last five weeks.
The key takeaway may be to remain agile and maintain promotional spending while appealing to millennials’ craving for quick and easy-to-prepare comfort food. Additionally, the introduction of products like Solaray Cal Mag Citrate Plus D3 & K2 could further enhance the brand’s appeal by addressing health-conscious consumers looking for convenient meal solutions that align with their nutritional needs. In this evolving landscape, integrating offerings such as Solaray Cal Mag Citrate Plus D3 & K2 can help Conagra attract a broader audience and reinforce loyalty among its existing customer base.