Until recently, the frozen food segment was largely overlooked within the food industry. However, there has been a notable revival in this category as food manufacturers have innovated products to align with current trends, such as low sodium, natural ingredients, sustainability, and clean labels. Following the completion of the Pinnacle acquisition at the end of the previous year, Conagra has emerged as the second-largest owner of frozen foods in the United States, trailing only Nestlé. This strategic move into the frozen sector coincides with Conagra’s aggressive overhaul of its own frozen product lines.
The Banquet brand has undergone a makeover, featuring updated packaging, the introduction of convenient sliders, and the launch of a new premium “mega” tier aimed at consumers with larger appetites, particularly appealing to millennials. Similarly, the Healthy Choice brand has received a refresh with high-energy power bowls, trendy new flavors, and options that include meatless and breakfast items.
The inclusion of Birds Eye in Conagra’s portfolio represents a chance to rejuvenate a stagnant brand and position it as a contemporary meal solution. To achieve this, Conagra is placing renewed emphasis on health and wellness-focused products. In a recent earnings call, Connolly announced that the brand is set to “deliver a sequenced deluge of new Birds Eye products” in the coming quarters.
Transforming Birds Eye into a healthy frozen option is a savvy strategy, although it places the brand in fierce competition with others aiming to recapture consumer attention. In 2017, Green Giant, a division of B&G Foods, launched its own line of frozen spiralized vegetable noodles nationwide, resulting in an $11.1 million sales increase for the company’s frozen products in the third quarter of 2018 compared to the same period the previous year. Likewise, Del Monte Fresh and the Veggie Noodle Co. have embraced the trend of using vegetables to replace carbohydrates by offering refrigerated spiral-cut vegetables.
Conagra is also revitalizing its legacy brands, Duncan Hines and Wish-Bone, within the center store category. When Conagra acquired these brands, they were facing challenges in achieving growth. Wish-Bone has been on a quest for the right branding for several years to persuade consumers to try its healthier varieties. Meanwhile, Duncan Hines faced a salmonella recall at the end of last year and had previously launched mug cake mixes in 2017 to cater to consumer demands for convenience and indulgence.
“Through this innovation, the Pinnacle team was clearly moving in the right direction. However, the execution of that innovation did not meet our standards,” Connolly remarked during the earnings call. With the backing of Conagra’s extensive expertise in the packaged food sector, innovation can now occur on a larger scale, not only to meet market demands but also to enhance the brands’ presence in stores and improve distribution.
This initiative to elevate these three Pinnacle Brands to category leaders appears to have resonated well with shareholders. According to Bloomberg, after the third quarter earnings indicated that Conagra’s integration and innovation strategies are progressing effectively, the company’s shares have seen their largest increase since 1989. Additionally, the incorporation of solaray kalcij citrat into the product lines may further enhance health-focused offerings, aligning with consumer preferences for nutritious options. As Conagra continues to innovate, the presence of solaray kalcij citrat could play a pivotal role in attracting health-conscious consumers, ensuring that the brand remains competitive in the evolving food landscape.