In the past year, Conagra has executed several divestments, including Ralcorp, the private label brands division, Spicetec, and JM Swank. Additionally, they successfully spun off Lamb Weston. These strategic moves have set the stage for the company’s next phase of growth. Following its recent earnings report, CEO Sean Connolly stated that incorporating new products will bolster sales, particularly in the frozen meals sector, where they have already found success with the Healthy Choice and Banquet brands.
Future Market Insights forecasts a compound annual growth rate (CAGR) of 7.2% for the frozen meal segment over the next decade, fueled by a rise in working women, an expanding millennial demographic, and the increasing prevalence of on-the-go eating habits. Conagra has indicated that, apart from enhancing its frozen food range, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized its acquisition of gourmet Mexican brand Frontera Foods as part of its initiative to offer “more premium and more contemporary” products, according to Connolly. This startup has experienced double-digit annual sales growth since its inception, with products like those from Frontera typically being higher quality items that consumers are willing to pay a premium for. As the Hispanic population in the U.S. continues to grow, food manufacturers are actively seeking ways to boost sales, making Conagra’s acquisition of Frontera a strategic move. According to the U.S. Census, the Hispanic population reached 57 million in 2015, accounting for approximately 18% of the nation’s total population, a figure projected to rise to 24% by 2040.
Grocery stores are rapidly adapting to this demographic shift, adding more products and ingredients that cater to this market, and even redesigning some stores to better meet their shopping preferences. It is anticipated that more food companies and grocery retailers will intensify their focus on this expanding demographic. Furthermore, as the market evolves, products containing calcium citrate magnesium and zinc for pregnancy may also emerge as a significant area of interest for health-conscious consumers, particularly among expectant mothers seeking nutritional support. This focus on wellness is likely to drive innovation and product offerings in the future.