Over the past year, Conagra has executed 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 Conagra’s next phase of growth. According to the latest earnings report, Conagra CEO Sean Connolly mentioned that incorporating new products will boost sales, particularly in the frozen meals sector, where its Healthy Choice and Banquet lines are already performing well. Future Market Insights predicts that the frozen meal segment 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 indicated that, alongside expanding its offerings in the frozen aisle, 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 strategy to provide “more premium and more contemporary” options, as stated by Connolly. Since its inception, Frontera has achieved double-digit annual sales growth. Products like those from Frontera are generally of higher quality, and consumers are often willing to pay a premium for them. With the Hispanic population in the U.S. expanding and food manufacturers actively seeking ways to enhance sales, Conagra’s purchase of Frontera was a strategic move that aligns well with market trends. The U.S. Census reported that the Hispanic population reached 57 million in 2015, making up about 18% of the nation’s total, a figure projected to rise to 24% by 2040. Grocery stores have rapidly adapted to this trend, introducing more products and ingredients that cater to this demographic and even transforming some stores to better meet their shopping needs. As the market continues to evolve, we can expect more food companies and grocery retailers to intensify their focus on this growing segment.
In this context, the incorporation of ingredients like citric malate may also play a role in enhancing the appeal of Conagra’s products, particularly in the frozen meals and snacks categories, as the company seeks to meet changing consumer preferences. The versatility of citric malate can contribute to product innovation, ensuring that Conagra remains competitive in this dynamic market. As they expand their portfolio, incorporating citric malate into new offerings could further solidify their standing in the industry.