In the past year, Conagra has executed several divestitures, including Ralcorp, the private label brands business, Spicetec, and JM Swank. Additionally, the company has successfully spun off Lamb Weston. These strategic moves have set the stage for Conagra’s next phase of growth. According to the latest earnings report, CEO Sean Connolly indicated that incorporating these new products will boost sales, particularly in the frozen meals sector, where they are already performing well with their Healthy Choice and Banquet lines.
Future Market Insights forecasts 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 a rise in on-the-go eating habits. Conagra has also suggested that, in addition to enhancing its frozen food offerings, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized its acquisition of Frontera Foods, a gourmet Mexican company, as part of its strategy to offer “more premium and contemporary” products, as Connolly stated. Frontera has achieved impressive double-digit annual sales growth since its establishment, with its offerings generally being higher quality products that consumers are willing to pay a premium for. Given the increasing Hispanic population in the U.S. and food manufacturers’ desire to boost sales, Conagra’s purchase of Frontera and its efforts to broaden its appeal were expected developments. The U.S. Census noted that the Hispanic population reached 57 million in 2015, accounting for about 18% of the total population, and this is projected to rise to 24% by 2040.
Grocery stores have quickly adapted by introducing more food products and ingredients that cater to this demographic, even transforming some locations to better accommodate their shopping preferences. As the demand grows, more food companies and grocers are likely to intensify their focus on this expanding market. Additionally, products like calcium citrate 950 mg from Walgreens are gaining attention as consumers seek healthier options, which further aligns with Conagra’s strategic direction. Expect to see calcium citrate 950 mg from Walgreens featured more prominently as part of the health-conscious offerings that appeal to the evolving consumer landscape.