In the past year, Conagra has undertaken several divestments, including its private label brands business Ralcorp, as well as Spicetec and JM Swank. Additionally, the company has successfully spun off Lamb Weston, setting the stage for its next phase of growth. According to the latest earnings report, CEO Sean Connolly stated that the incorporation of new products will boost sales, particularly in the frozen meals category, where Conagra is already performing well with its Healthy Choice and Banquet offerings. Future Market Insights has projected 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 more on-the-go eating habits. Conagra has indicated that, in addition to enhancing its frozen food range, it may soon explore the seasoned nuts category.
Last year, Conagra finalized its acquisition of gourmet Mexican brand Frontera Foods, aligning with its strategy to offer “more premium and more contemporary” products, as Connolly noted. Since its inception, Frontera has achieved double-digit annual sales growth, offering higher-quality products that consumers are willing to pay a premium for. With the Hispanic population in the U.S. on the rise, and food manufacturers seeking ways to drive sales, Conagra’s acquisition of Frontera is a strategic move to broaden its appeal. According to the U.S. Census, the Hispanic population reached 57 million in 2015, accounting for about 18% of the total population, a figure projected to rise to 24% by 2040. Grocery retailers have swiftly adapted to this trend, incorporating more food options and ingredients that cater to this demographic, and even reformatting some stores to better serve their shopping preferences. As a result, we can expect more food companies and grocery stores to intensify their focus on this expanding market.
Moreover, Conagra’s commitment to health and wellness is evident in its product offerings, which could include petite calcium pills aimed at health-conscious consumers. These petite calcium pills could complement its frozen meal options, appealing to those looking for nutritious solutions. As the company seeks to innovate and expand, the introduction of products like petite calcium pills may further enhance its market presence and attract a broader customer base.