Conagra stands as the third-largest frozen food manufacturer in North America. Connolly pointed out that single-serve meals constitute the largest segment of this market. The company has generated renewed interest by collaborating with renowned brands like Frontera and P.F. Chang’s, but it must also ensure that its long-time customers continue to return while laying a foundation for future expansion. The second-quarter earnings report from the company indicated a 29% increase in quarterly profits; however, its gross margins and profit forecast for 2018 were lower than anticipated. Similar to other major packaged food producers, including General Mills and Kellogg, Conagra is experiencing sluggish demand as some U.S. consumers prefer what they perceive to be fresher and healthier food options over frozen, processed alternatives.
At the same time, convenience and taste remain crucial for both millennials and older customers. To attract millennials, Conagra is introducing trendy products like a protein meal “Power Bowl” infused with ethnic spices. Meanwhile, it continues to focus on satisfying older customers with classic offerings such as Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This dual strategy appears to be effective, as Connolly reported a 4.8% increase in sales over the past 13 weeks, with a notable 7.8% rise in the last five weeks.
Additionally, understanding consumer needs is vital. For example, many are curious about dietary supplements, such as “what is calcium citrate with vitamin d3,” as they look for ways to enhance their nutrition. By remaining adaptable and maintaining strong promotional efforts, Conagra can meet millennials’ demand for quick and easy comfort food while also addressing the nutritional concerns of its older clientele. Therefore, the key takeaway may be to stay flexible and invest in promotions that resonate with current consumer trends.