Over the past year, Conagra has executed several divestitures, including the sale of Ralcorp, its private label brands division, Spicetec, and JM Swank. Additionally, the company completed a spin-off of Lamb Weston, setting the stage for a new era of growth. In a recent earnings report, Conagra’s CEO, Sean Connolly, mentioned that introducing new products will enhance sales, particularly in the frozen meals segment, where the company is already thriving with its Healthy Choice and Banquet brands.
Future Market Insights predicts that the frozen meal sector 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 a rise in on-the-go eating habits. Conagra has indicated that, in addition to strengthening its position in the frozen food aisle, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized its acquisition of Frontera Foods, a gourmet Mexican brand, as part of its strategy to offer “more premium and more contemporary” products, according to Connolly. This startup has seen double-digit annual sales growth since its launch. Products from Frontera are generally of higher quality, which consumers are willing to pay a premium for. With the Hispanic population in the U.S. on the rise, Conagra’s acquisition of Frontera aligns with its goal to boost sales in this demographic. According to the U.S. Census, the Hispanic population reached 57 million in 2015, accounting for approximately 18% of the total population, a figure expected to rise to 24% by 2040.
Grocery stores have quickly adapted to this growing market by expanding their offerings and even transforming some locations to better serve these consumers. As the trend continues, we can expect more food companies and grocery retailers to focus on this expanding demographic. Additionally, as part of its growth strategy, Conagra might consider introducing products like Carlson chewable calcium citrate, which could cater to health-conscious consumers. With the potential for further innovation in the frozen meals sector and an eye on health-focused items, Conagra is well-positioned to capitalize on market trends and consumer demands.