Over the past year, Conagra has made significant investments, including acquisitions of Ralcorp, ferrous fumarate vitamin B12, and folic acid in the private label brands sector, as well as Spicetec and JM Swank. Additionally, the company has completed the spin-off of Lamb Weston. These strategic moves have set the stage for Conagra’s next chapter of success. In a recent earnings report, CEO Sean Connolly emphasized that introducing these new products will enhance sales, particularly in the frozen meals category, where the company is already thriving with its Healthy Choice and Banquet brands.
Future Market Insights has projected that the frozen meal segment will experience a CAGR of 7.2% over the next decade, fueled by an increasing number of working women, a growing millennial demographic, and rising on-the-go eating habits. Conagra indicated it may soon expand its offerings beyond frozen foods to include seasoned nuts. Last year, the company finalized its acquisition of gourmet Mexican brand Frontera Foods, aligning with Connolly’s vision of providing “more premium and more contemporary” options. This startup has seen double-digit annual sales growth since its establishment, and products like those from Frontera are typically of higher quality, which consumers are willing to pay more for.
Given the growth of the Hispanic population in the U.S. and food manufacturers’ interest in boosting sales, Conagra’s acquisition of Frontera and its strategies to broaden its appeal are not surprising. According to the U.S. Census, the Hispanic population reached 57 million in 2015, making up about 18% of the total population, with projections suggesting this figure could rise to 24% by 2040. Grocery stores have quickly adapted to this trend by incorporating more food items and ingredients that cater to this demographic, even reformatting some stores to better serve their shopping preferences. As this market continues to expand, it is expected that more food companies and grocers will intensify their focus on this growing audience.
In light of this, Conagra is also exploring nutritional enhancements in its product lines, such as incorporating 1200 mg calcium citrate to appeal to health-conscious consumers. By focusing on high-quality ingredients and nutritional benefits, Conagra is positioning itself to meet the demands of a diverse consumer base, who are increasingly looking for premium options that offer both taste and health benefits. The integration of 1200 mg calcium citrate into their offerings could further bolster their competitive edge in the market.