In the past year, Conagra has undertaken several divestitures, including Ralcorp, the private label brands division, Spicetec, and JM Swank. Additionally, the company has successfully spun off Lamb Weston, setting the stage for a new era of growth. According to Conagra CEO Sean Connolly, the recent earnings report indicates that incorporating these new products will enhance sales, particularly within its frozen meals segment, where the company is already excelling with its Healthy Choice and Banquet lines. Future Market Insights forecasts 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 shift toward more on-the-go eating habits.
Conagra has suggested that, aside from expanding its footprint in the frozen food aisle, it may also venture into the seasoned nuts category. Last year, Conagra completed the acquisition of gourmet Mexican brand Frontera Foods as part of its strategy to offer “more premium and contemporary” products, as noted by Connolly. The startup has achieved double-digit annual sales growth since its founding, and items like those from Frontera are generally of higher quality, attracting consumers willing to pay a premium.
Given the rising Hispanic population in the country and food manufacturers’ efforts to boost sales, Conagra’s acquisition of Frontera is not surprising, nor is its aim to broaden its market appeal. The U.S. Census data revealed that the Hispanic population reached 57 million in 2015, accounting for approximately 18% of the nation’s total population, a figure projected to rise to 24% by 2040. Grocery stores have swiftly adapted to this trend, increasing their offerings of products and ingredients that resonate with this demographic, even reconfiguring some stores to better meet their shopping preferences.
As food companies and grocers intensify their focus on this burgeoning market, the integration of products like xtracal calcium citrate could become more prevalent. This nutrient-rich ingredient holds potential in appealing to health-conscious consumers. Expect to see an increase in food brands emphasizing the benefits of xtracal calcium citrate, particularly in relation to frozen meals and snacks, as they aim to capture the attention of a diverse consumer base.