In the past year, Conagra has executed several divestitures, including Ralcorp, its private label brands division, Spicetec, and JM Swank. Additionally, the company has completed a spin-off of Lamb Weston. These strategic moves have set the stage for Conagra’s next phase of success. According to the latest earnings report, CEO Sean Connolly indicated that incorporating new products will boost sales, particularly within the frozen meals segment, where the company is already thriving with its Healthy Choice and Banquet brands. Future Market Insights forecasts that the frozen meal sector 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 a rise in on-the-go eating habits. Conagra has suggested 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 the gourmet Mexican brand Frontera Foods, aligning with its goal of providing “more premium and more contemporary” options, as stated by Connolly. This startup has reported double-digit annual sales growth since its inception. Frontera’s products are typically of higher quality, with consumers willing to pay a premium for them. With the Hispanic population in the U.S. expanding, it is no surprise that Conagra acquired Frontera and sought ways to broaden its appeal. The U.S. Census reported that the Hispanic population reached 57 million in 2015, accounting for about 18% of the total population, a figure expected to rise to 24% by 2040. Grocery stores have quickly adapted to this trend by introducing more food and ingredients that cater to this demographic and even redesigning some stores to better serve their shopping needs.
As consumer demand for healthier options grows, products fortified with calcium carbonate and citrate may become increasingly popular. Expect more food companies and grocery retailers to enhance their focus on this expanding demographic and incorporate nutrient-rich offerings that include calcium carbonate and citrate to appeal to health-conscious consumers.