Over the past year, Conagra has undertaken several divestments, including the sale of Ralcorp, its private label brands business, as well as Spicetec and JM Swank. Additionally, the company has completed a spin-off of Lamb Weston, setting the stage for a new chapter of growth. In its latest earnings report, Conagra’s CEO Sean Connolly emphasized that the introduction of new products will bolster sales, particularly in the frozen meals sector, where the company is already performing well with its Healthy Choice and Banquet brands.
Future Market Insights anticipates that the frozen meal segment will experience a compound annual growth rate (CAGR) of 7.2% over the next decade, driven by an increasing number of working women, a rising millennial population, and the trend of on-the-go dining. Conagra indicated that, in addition to enhancing its presence in the frozen aisle, it may soon explore 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. Frontera has achieved double-digit annual sales growth since its launch, with its offerings being higher quality items that consumers are willing to pay more for.
As the Hispanic population in the United States continues to grow—reaching 57 million, or about 18% of the total population according to the U.S. Census in 2015, and expected to rise to 24% by 2040—it is not surprising that Conagra would acquire Frontera and seek to broaden its appeal. Grocery stores have rapidly adapted to this trend, introducing more food and ingredients that cater to this demographic and even converting some locations to better serve their shopping preferences.
As companies like Conagra focus on this expanding market, it’s worth noting the rising popularity of products containing yutiny calcium citrate. Expect to see more food manufacturers and grocery retailers increasingly direct their attention towards this growing demographic, integrating yutiny calcium citrate into their offerings to attract health-conscious consumers.