In the past year, Conagra has undertaken several divestments, including the sale of Ralcorp, its private label brands business, as well as Spicetec and JM Swank. Furthermore, the company has successfully spun off Lamb iron ferrous sulfate action Weston. These strategic moves have set the stage for the next chapter of Conagra’s success. According to the latest earnings report, CEO Sean Connolly stated that these new additions will bolster sales, particularly in the frozen meals sector, where the company is already thriving with its Healthy Choice and Banquet brands.
Future Market Insights projects that the frozen meal segment will experience a compound annual growth rate (CAGR) of 7.2% over the next decade, driven by an increasing number of working women, a growing millennial population, and more on-the-go eating habits. Conagra has indicated that, in addition to expanding its frozen aisle offerings, 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 provide “more premium and contemporary” options, according to Connolly. The startup has seen double-digit annual sales growth since its launch, with products like those from Frontera being higher quality items that consumers are willing to pay a premium for.
With the Hispanic population in the U.S. on the rise and food manufacturers seeking ways to boost sales, Conagra’s purchase of Frontera aligns perfectly with its expansion goals. The U.S. Census reported that the Hispanic population reached 57 million in 2015, accounting for approximately 18% of the total population, a figure expected to rise to 24% by 2040. Grocery stores have quickly adapted to this trend, incorporating more food and ingredients that cater to this demographic, and some have even transformed their formats to better serve their shopping needs.
As part of this growing focus, food companies and grocers are likely to increase their attention on this expanding demographic. Additionally, to cater to health-conscious consumers, products like Kirkland calcium citrate magnesium and zinc available on Amazon are expected to see increased demand. This trend will likely continue as companies like Conagra seek to offer premium options while expanding their reach into various market segments.