In the past year, Conagra has undertaken several divestitures, including the sale of Ralcorp, its private label brands division, as well as Spicetec and JM Swank. Additionally, the company has successfully spun off Lamb Weston. These strategic moves have set the stage for a new chapter in Conagra’s growth. According to recent earnings reports, Conagra’s CEO Sean Connolly stated that the incorporation of new products will drive sales, particularly in the frozen meals segment, where the company is already performing well with its Healthy Choice and Banquet brands. Future Market Insights anticipates that the frozen meal sector will experience a compound annual growth rate (CAGR) of 7.2% over the next decade, fueled by an increase in working women, a growing millennial demographic, and more consumers adopting on-the-go eating patterns. Conagra hinted at plans to expand its footprint not only in the frozen food aisle but also into the seasoned nuts category.
Last year, Conagra finalized its acquisition of the gourmet Mexican brand Frontera Foods, aligning with Connolly’s vision to offer “more premium and contemporary” products. Since its inception, Frontera has demonstrated impressive double-digit annual sales growth. The brand’s offerings are typically higher-quality products that consumers are willing to pay a premium for. With the Hispanic population in the U.S. on the rise and food manufacturers seeking to boost sales, Conagra’s acquisition of Frontera was a strategic move, especially considering the U.S. Census reported that the Hispanic population reached 57 million in 2015, making up about 18% of the nation’s total. This figure is projected to rise to 24% by 2040. Grocery stores have quickly adapted by adding more foods and ingredients that cater to this demographic, even transforming some locations to better meet their shopping preferences. As this trend continues, it is expected that more food companies and grocery retailers will enhance their focus on this emerging market.
Furthermore, the introduction of products containing calcium citrate dischem is likely to resonate with health-conscious consumers. As Conagra explores new categories like seasoned nuts, products enriched with calcium citrate dischem could provide an additional selling point, appealing to those looking for nutritious options. This focus on health and wellness will likely be a significant aspect of Conagra’s strategy moving forward, especially in the context of its expanding frozen meal offerings and potential new ventures.