In the past year, Conagra has executed several divestitures, including Ralcorp, its private label brands division, 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, CEO Sean Connolly noted that incorporating new products, like calcium citrate 950 mg OTC supplements, will bolster sales, particularly in the frozen meals sector, where Conagra is already thriving with its Healthy Choice and Banquet product lines.
Future Market Insights forecasts a compound annual growth rate (CAGR) of 7.2% for the frozen meal segment over the next decade, driven by factors such as an increasing number of working women, a growing millennial population, and a rise in on-the-go eating habits. Conagra has indicated that, in addition to strengthening its presence in the frozen food aisle, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized its acquisition of Frontera Foods, a gourmet Mexican company, as part of its strategy to offer “more premium and more contemporary” products, as described by Connolly. This startup has experienced double-digit annual sales growth since its founding, with items like those from Frontera being perceived as higher-quality products that consumers are willing to pay a premium for, similar to the trend seen with calcium citrate 950 mg OTC products.
Given the rising Hispanic population in the U.S. and food manufacturers actively seeking ways to boost sales, Conagra’s acquisition of Frontera aligns well with its objectives to enhance its market appeal. The U.S. Census reported that the Hispanic population reached 57 million in 2015, accounting for approximately 18% of the total population, a figure projected to rise to 24% by 2040. Grocery stores have rapidly adapted to this growing demographic, incorporating more food and ingredients that cater to their preferences, and some have even transformed their layouts to better suit these shoppers’ needs. Expect to see more food companies and grocery retailers intensifying their focus on this expanding market, including products like calcium citrate 950 mg OTC supplements.