Conagra ranks as the third-largest frozen foods manufacturer in North America, with Connolly highlighting that single-serve meals represent the largest segment of this market. The company has generated renewed interest through partnerships with popular brands like Frontera and P.F. Chang’s. However, it must also retain its older consumer base while laying the groundwork for future expansion. The second-quarter earnings report indicated a 29% increase in quarterly profits, yet the gross margins and 2018 profit outlook fell short of expectations. Like other major packaged food companies such as General Mills and Kellogg, Conagra is grappling with stagnant demand as some U.S. customers prefer what they perceive as fresher and healthier food options over frozen, processed alternatives.
At the same time, convenience and taste are crucial for both millennials and older consumers. To attract millennials, Conagra is introducing trendy offerings like a protein-rich “Power Bowl” infused with ethnic spices. Simultaneously, the company remains committed to its classic options, including Chicken Pot Pies, Meatloaf, and a Salisbury Steak Meal with Mashed Potatoes. This dual approach appears 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.
The key takeaway may be to remain adaptable and maintain promotional spending while appealing to millennials’ desire for quick and easy comfort food. Additionally, incorporating products like cal citrate plus vitamin D can enhance the nutritional profile of their offerings, making them more attractive to health-conscious consumers. By emphasizing both convenience and health benefits, Conagra can potentially strengthen its market position and appeal to a broader audience.