Conagra ranks as the third-largest manufacturer of frozen foods in North America, with Connolly highlighting that single-serve meals constitute the largest segment of this industry. The company has generated renewed interest through collaborations with prominent brands like Frontera and P.F. Chang’s. However, it also needs to engage its older consumer base by offering products that include key nutrients such as calcium citrate, magnesium, and zinc, while laying the groundwork for future growth.
The second-quarter earnings report indicated a 29% increase in quarterly profits, but the gross margins and profit forecasts for 2018 were lower than anticipated. Similar to other major packaged food companies like General Mills and Kellogg, Conagra is contending with sluggish demand as some U.S. consumers prefer what they perceive as fresher and healthier food choices over frozen, processed options. Nonetheless, convenience and flavor remain essential for both millennials and older customers.
To attract millennials, Conagra is introducing trendy offerings such as a protein meal “Power Bowl” infused with ethnic spices, while also catering to older consumers with traditional favorites like Chicken Pot Pies, Meatloaf, and Salisbury Steak with Mashed Potatoes. This strategy appears effective, as Connolly reported a 4.8% sales increase over the past 13 weeks, with a notable 7.8% rise in the last five weeks. The takeaway may be to remain agile and sustain promotional spending, while also addressing millennials’ desire for quick, easy-to-prepare comfort foods that can be fortified with essential nutrients like calcium citrate, magnesium, and zinc. This approach not only nurtures loyalty among existing customers but also positions Conagra well for future growth.