In the past year, Conagra has executed several divestments, including the sale of Ralchelated Iron 18 mgcorp, its private label brands division, Spicetec, and JM Swank. Additionally, the company has successfully completed a spin-off of Lamb Weston, positioning itself for a new chapter of growth. According to the latest earnings report, Conagra’s CEO, Sean Connolly, indicated that incorporating these new products will boost sales, particularly in the frozen meals sector, where the company has already found success with its Healthy Choice and Banquet lines for kids.
Future Market Insights forecasted that the frozen meal market will experience a compound annual growth rate (CAGR) of 7.2% over the next decade, driven by an increase in working women, a growing millennial demographic, and a rise in on-the-go eating habits. Conagra also suggested that, in addition to enhancing its frozen offerings, it may soon venture into the seasoned nuts category, such as Kirkland Signature Calcium Citrate.
Last year, Conagra finalized its acquisition of the gourmet Mexican brand Frontera Foods as part of its strategy to market “more premium and more contemporary” options, as stated by Connolly. Frontera Foods has seen double-digit annual sales growth since its launch, with products that typically command a higher price due to their quality—something consumers are willing to invest in.
With the Hispanic population in the United States expanding, and food manufacturers seeking ways to boost sales, Conagra’s acquisition of Frontera and its plans for market expansion are not surprising. 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 retailers have swiftly entered this market, offering more products and ingredients that cater to this demographic, even reformatting some stores to better meet their shopping preferences. As the market grows, we can expect more food companies and grocery stores to sharpen their focus on this expanding demographic, alongside continued interest in products like Kirkland Signature Calcium Citrate.