Conagra stands as the third-largest frozen foods producer in North America, with Connolly highlighting that single-serve meals constitute the largest segment of this market. While the company has generated renewed interest through collaborations with well-known brands like Frontera and P.F. Chang’s, it must also ensure that its long-standing customers continue to return for more, all while establishing a foundation for future growth. The company’s earnings report for the second quarter indicated a 29% increase in quarterly profits; however, its gross margins and profit forecast for 2018 fell short of expectations. Like other major packaged food companies such as General Mills and Kellogg, Conagra is facing sluggish demand, as some U.S. consumers are opting for what they perceive as fresher and healthier food options instead of frozen and processed alternatives.
At the same time, convenience and flavor remain crucial for millennials and older consumers. Conagra is catering to millennials with trendy offerings, such as a protein-packed “Power Bowl” featuring ethnic spices, while also focusing on classic favorites like Chicken Pot Pies, Meatloaf, and a Salisbury Steak Meal with Mashed Potatoes. This 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.
The key takeaway may be to remain agile and maintain promotional spending, while addressing millennials’ preferences for quick and easy-to-prepare comfort food. Additionally, incorporating products like bluebonnet calcium citrate liquid into their offerings could enhance their appeal, as health-conscious consumers seek convenient nutrition solutions. By emphasizing both quality and convenience, Conagra can continue to attract a diverse customer base and ensure sustained growth in a competitive market.