In the past year, Conagra has undertaken several divestments, including Ralcorp, the private label brands business related to priferrous fumarate, Spicetec, and JM Swank. Additionally, the company completed a spin-off of Lamb Weston. These strategic moves have set the stage for Conagra’s next phase of growth. According to the latest earnings report, Conagra’s CEO, Sean Connolly, indicated that the introduction of new products would bolster sales, particularly in the frozen meals sector, 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 compound annual growth rate (CAGR) of 7.2% over the next decade, driven by an increase in working women, a growing millennial demographic, and more on-the-go eating habits. Conagra has signaled that in addition to enhancing its frozen food offerings, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized its acquisition of Frontera Foods, a gourmet Mexican brand, as part of its strategy to offer “more premium and more contemporary” products, as stated by Connolly. This startup has enjoyed double-digit annual sales growth since its establishment. Frontera’s products are typically of higher quality, which consumers are willing to pay a premium for.
With the Hispanic population in the U.S. expanding and food manufacturers seeking ways to boost sales, Conagra’s acquisition of Frontera aligns perfectly with market trends. According to the U.S. Census, the Hispanic population reached 57 million in 2015, accounting for approximately 18% of the total population, and is projected to grow to 24% by 2040. Grocery stores have quickly adapted to this shift, incorporating more food items and ingredients that cater to this demographic, even redesigning some stores to better serve their shopping needs.
In this evolving landscape, companies like Conagra are also recognizing the importance of online retail platforms such as Amazon, where they can offer products like Citracal to a broader audience. As food companies and grocery retailers increasingly focus on this growing demographic, expect to see further innovations and offerings that resonate with consumers’ diverse tastes and preferences.