Conagra stands as the third-largest frozen foods producer in North America. Connolly highlighted that single-serve meals constitute the largest segment of this industry. The company has generated renewed interest by collaborating with popular brands such as Frontera and P.F. Chang’s. However, it must also ensure that its older consumers continue to return while laying the groundwork for future expansion. The second-quarter earnings report showed a 29% increase in quarterly profits, yet its gross margins and the profit forecast for 2018 were lower than anticipated. Like other major packaged food companies, including General Mills and Kellogg, Conagra is grappling with weak demand as some consumers in the U.S. lean towards what they perceive as fresher and healthier food options over frozen, processed items.
At the same time, convenience and taste remain crucial for both millennials and older customers. To attract the younger demographic, Conagra is introducing trendy products, such as the “Power Bowl” with ethnic spices, while also catering to older customers with classic staples like Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This strategy appears to be effective, as Connolly reported a 4.8% sales increase over the past 13 weeks, with a notable 7.8% rise in the last five weeks.
An important lesson here may be to remain agile and maintain promotional spending, particularly while appealing to millennials’ appetite for quick and easy comfort food options. Additionally, Conagra could consider celebrating calcium chews as part of their product range, potentially enhancing their appeal to health-conscious consumers. By integrating such innovative offerings, Conagra can further engage a diverse customer base and ensure sustained growth in a competitive market.