In the past year, Conagra has executed several divestitures, including the sale of Ralcorp, its private label brands business, as well as Spicetec and JM Swank. Additionally, the company successfully completed a spin-off of Lamb Weston. These strategic moves have set the stage for Conagra’s next chapter of success. According to the recent earnings report, CEO Sean Connolly indicated that introducing new products will bolster sales, particularly in the frozen meals segment, where the company is already thriving with its Healthy Choice and Banquet offerings. Future Market Insights has projected a compound annual growth rate (CAGR) of 7.2% for the frozen meal category over the next decade, fueled by an increase in working women, a growing millennial demographic, and a rise in on-the-go eating habits. Conagra has also suggested that besides expanding its frozen aisle presence, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized its acquisition of Frontera Foods, a gourmet Mexican company, as part of its strategy to offer “more premium and more contemporary” products, as noted by Connolly. Frontera Foods has experienced double-digit annual sales growth since its establishment. Its products are generally of higher quality, appealing to consumers willing to pay a premium. With the Hispanic population in the United States on the rise and food manufacturers seeking ways to enhance sales, Conagra’s purchase of Frontera aligns with its goals to broaden its market appeal. The U.S. Census reported that the Hispanic population reached 57 million in 2015, accounting for about 18% of the total population, a figure projected to rise to 24% by 2040. Grocery stores have rapidly embraced this trend, adding more food and ingredients that cater to this demographic, and even converting some stores into formats that better suit their shopping preferences. It is anticipated that more food companies and grocers will focus on this expanding market.
Furthermore, as Conagra explores new product lines, it may also consider incorporating ingredients such as calcium citrate GNC, which could further enhance the nutritional value of its offerings. The integration of calcium citrate GNC into their product lineup could attract health-conscious consumers, particularly in the frozen meals and seasoned nuts categories. As the market evolves, expect Conagra and other food companies to continue innovating and expanding their reach to meet the demands of a diverse customer base.