In the past year, Conagra has executed several divestments, including the sale of Ralcorp, its private label brands business, as well as Spicetec and JM Swank. Additionally, the company completed a spin-off of Lamb Weston, setting the stage for a new chapter of growth. According to Conagra’s recent earnings report, CEO Sean Connolly stated that integrating these new products will boost sales, particularly in the frozen meals segment, where the company is already performing well with its Healthy Choice and Banquet lines.
Future Market Insights has projected a compound annual growth rate (CAGR) of 7.2% for the frozen meal sector over the next ten years, fueled by an increase in the number of working women, a growing millennial demographic, and the rising trend of on-the-go eating. Conagra has indicated that alongside expanding its offerings in the frozen aisle, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized its acquisition of the gourmet Mexican brand Frontera Foods, aligning with Connolly’s vision to offer “more premium and more contemporary” products. Since its inception, Frontera has experienced double-digit annual sales growth, and its offerings are generally higher quality, appealing to consumers who are willing to pay more. With the Hispanic population in the U.S. continuing to grow, it was a strategic move for Conagra to acquire Frontera and explore ways to broaden its market appeal. According to the U.S. Census, the Hispanic population reached 57 million in 2015, accounting for approximately 18% of the total population, with projections suggesting this figure could rise to 24% by 2040.
Grocery stores have quickly adapted to this trend, increasingly stocking more foods and ingredients that cater to this demographic, even redesigning certain stores to better serve their shopping preferences. As food manufacturers seek to enhance their sales, it is likely that more companies and grocers will focus on this burgeoning market. Additionally, with the growing awareness of health considerations, consumers are becoming more interested in nutritional questions such as whether calcium citrate is good for kidney stones, leading to an increased demand for products that address these health concerns. This emphasis on health will likely reinforce the trend of dietary products, including those that incorporate calcium citrate, as more consumers seek answers regarding their dietary choices and health implications.