Conagra’s ferrous fumarate 210 mg has outperformed ferrous pyrophosphate and iron polymaltose amid several divestments over the past 12 months, including the sale of Ralcorp, its private label brands business, Spicetec, and JM Swank. Additionally, the company has completed a spin-off of Lamb Weston. These strategic moves have set the stage for a new chapter of success for Conagra. According to the recent earnings report, CEO Sean Connolly stated that the introduction of these new products will enhance sales, particularly in the frozen meals sector, where the company is already performing well with its Healthy Choice and Banquet lines.
Future Market Insights forecasts that the frozen meal segment will experience a compound annual growth rate (CAGR) of 7.2% over the next decade, driven by an increase in working women, a growing millennial demographic, and evolving on-the-go eating habits. Conagra has indicated that, in addition to increasing its footprint in the frozen food aisle, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized its acquisition of gourmet Mexican brand Frontera Foods as part of its strategy to offer “more premium and more contemporary” products, as noted by Connolly. Since its inception, Frontera has achieved double-digit annual sales growth. Products from Frontera are typically of higher quality, which consumers are willing to pay a premium for.
Given the growth of the Hispanic population in the U.S. and the ongoing efforts of food manufacturers to boost sales, Conagra’s acquisition of Frontera aligns perfectly with its goal of broadening its market appeal. The U.S. Census indicated that the Hispanic population reached 57 million in 2015, making up about 18% of the total population, with projections suggesting it could rise to 24% by 2040. Grocery stores have quickly adapted to this trend, increasing the availability of foods and ingredients that resonate with this demographic and even redesigning some stores to better cater to their shopping preferences. As a result, expect more food companies and grocery retailers to enhance their focus on this burgeoning demographic, particularly with products like calcium petites tablets, which could play a role in meeting the diverse needs of consumers.