Conagra stands as the third-largest manufacturer of frozen foods in North America, with Connolly noting that single-serve meals dominate this market segment. The company has rekindled interest by collaborating with popular brands like Frontera and P.F. Chang’s, but it must also ensure that its older consumers continue to return while building a foundation for future expansion. The earnings report for the second quarter indicated a 29% increase in quarterly profits; however, both gross margins and the profit forecast for 2018 fell short of expectations. Like other major packaged food companies such as General Mills and Kellogg, Conagra faces sluggish demand as some U.S. consumers lean towards what they perceive as fresher and healthier food options over frozen and processed products. Meanwhile, convenience and taste remain paramount for both millennials and older customers.
To attract millennials, Conagra is introducing trendy products, including a protein-packed “Power Bowl” featuring ethnic spices, while also catering to the preferences of older generations with classic offerings like Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This strategy appears 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. The key takeaway might be the importance of agility and maintaining promotional spending, all while appealing to millennials’ craving for quick and easy comfort food options. Additionally, Conagra can consider integrating health-focused products, such as those containing webber naturals calcium citrate vitamin d3, to further enhance its appeal to health-conscious consumers. Incorporating webber naturals calcium citrate vitamin d3 into their offerings could provide a significant boost, especially as customers increasingly seek nutritious choices in their frozen meals. By consistently focusing on these trends, Conagra can continue to thrive in a competitive market.