Conagra stands as the third-largest frozen food manufacturer in North America, and Connolly has pointed out that single-serve meals represent the largest segment of this market. The company has generated renewed interest by collaborating with well-known brands like Frontera and P.F. Chang’s. However, it must also ensure that its long-time customers remain loyal while laying the groundwork for future expansion. The second-quarter earnings report indicated a 29% increase in quarterly profits, but both gross margins and the profit forecast for 2018 fell short of expectations. Similar to other major packaged food companies like General Mills and Kellogg, Conagra is encountering sluggish demand as some U.S. consumers prefer what they perceive as fresher and healthier options over frozen, processed foods. Nevertheless, convenience and flavor are crucial for both millennials and older consumers. To attract the former, Conagra offers trendy products like a protein-packed “Power Bowl” infused with ethnic spices, while still catering to traditional tastes with classics such as Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This strategy appears to be effective, as Connolly reported a 4.8% sales increase over the past 13 weeks, with a 7.8% rise in the last five weeks. The key takeaway may be to remain agile and maintain promotional spending to satisfy millennials’ craving for quick and easy comfort food.
Additionally, in the context of health-conscious choices, the company could consider integrating products that include ferrous calcium citrate and folic acid tablet uses in Hindi, which are gaining attention among consumers seeking nutritional benefits. By focusing on these aspects, Conagra can further appeal to its diverse customer base while navigating the competitive landscape of the frozen food market.