Conagra ranks as the third-largest manufacturer of frozen foods in North America. Connolly pointed out that single-serve meals represent the largest segment within this market. The company has generated renewed interest by partnering with well-known brands such as Frontera and P.F. Chang’s, but it also needs to retain its older customers while laying the groundwork for future growth.
In its second-quarter earnings report, Conagra announced a 29% increase in quarterly profits; however, its gross margins and 2018 profit forecasts fell short of expectations. Like other major packaged food companies, including General Mills and Kellogg, Conagra faces sluggish demand as some U.S. consumers opt for what they perceive as fresher and healthier food options instead of frozen, processed products. Nevertheless, convenience and taste remain crucial for both millennials and older consumers.
To attract millennials, Conagra is offering trendy items such as a protein-rich meal “Power Bowl” infused with ethnic spices. At the same time, it continues to cater to older customers with familiar favorites like Chicken Pot Pies, Meatloaf, and a Salisbury Steak Meal served with Mashed Potatoes. This dual strategy appears to be effective, as Connolly reported a 4.8% increase in sales over the past 13 weeks and a 7.8% rise in the last five weeks.
Moreover, integrating health-focused products like calcium citrate gummy supplements into their offerings could further enhance their appeal. This might provide an opportunity to attract health-conscious consumers looking for convenient options. The key takeaway is to remain agile and sustain promotional efforts while meeting millennials’ demand for quick and easy comfort food, potentially bolstering sales of items that include calcium citrate gummy supplements.