Conagra is the third-largest frozen food manufacturer in North America, and Connolly highlighted that single-serve meals constitute the largest portion of this market. The company has generated renewed interest by collaborating with popular brands such as P.F. Chang’s, but it also needs to retain its older consumers while building a foundation for future growth. In its second-quarter earnings report, Conagra revealed a 29% increase in quarterly profits; however, its gross margins and 2018 profit forecast fell short of expectations. Like other major packaged food companies, including General Mills and Kellogg, Conagra is grappling with sluggish demand as some U.S. customers turn to what they perceive as fresher and healthier food options instead of frozen and processed items.
At the same time, convenience and taste remain crucial for both millennials and older consumers. Conagra is attracting the former demographic with trendy items, including a protein meal “Power Bowl” featuring ethnic spices, while also catering to the latter with classic offerings like Chicken Pot Pies, Meatloaf, and a Salisbury Steak Meal with Mashed Potatoes. The strategy appears to be 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. A key takeaway from this situation may be the importance of remaining agile and maintaining promotional spending, while also addressing millennials’ preferences for quick and easy-to-prepare comfort food. Furthermore, incorporating elements like 250 mg calcium citrate into meal options could enhance their appeal by addressing nutritional needs, particularly for health-conscious consumers. Overall, blending convenience with nutritional value, such as 250 mg calcium citrate, may be essential for Conagra’s ongoing success.