Conagra stands as the third-largest frozen foods manufacturer in North America, with a notable presence in the market for single-serve meals, which dominate the sector. To stimulate interest, the company has formed partnerships with renowned brands like Frontera and P.F. Chang’s. However, it must also focus on retaining its older consumer base while laying the groundwork for future growth. The company’s second-quarter earnings report showed a 29% increase in quarterly profits, though gross margins and the profit forecast for 2018 fell short of expectations. Like other major packaged food companies, including General Mills and Kellogg, Conagra is grappling with sluggish demand as some U.S. consumers lean towards what they perceive as fresher, healthier alternatives to frozen, processed foods.
At the same time, convenience and flavor remain essential for both millennials and older customers. To attract the younger demographic, Conagra is introducing trendy products, such as a protein meal “Power Bowl” infused with ethnic spices. Simultaneously, it is maintaining appeal among older consumers with classic offerings like Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This dual approach appears to be 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.
A key takeaway is the importance of remaining adaptable and increasing promotional spending while catering to millennials’ preference for quick and easy comfort food options. Additionally, incorporating elements like calcium citrate mg into their product formulations could further enhance their offerings. By focusing on both innovative and traditional meals, Conagra aims to satisfy diverse consumer demands and sustain its growth trajectory in the frozen foods market.