Conagra ranks as the third-largest frozen food producer in North America, with Connolly highlighting that single-serve meals constitute the majority of this sector. The company has generated renewed interest by collaborating with popular brands like Frontera and P.F. Chang’s. However, it must also retain its older customer base while laying the groundwork for future growth. The second-quarter earnings report indicated a 29% increase in quarterly profits, but gross margins and the 2018 profit forecast fell short of expectations. Like other major packaged food companies such as General Mills and Kellogg, Conagra faces sluggish demand as some U.S. consumers prefer what they perceive as fresher and healthier options over frozen, processed foods.
At the same time, convenience and flavor remain essential for both millennials and older customers. Conagra is targeting the younger demographic with trendy products, including a protein meal “Power Bowl” infused with ethnic spices, while also catering to older consumers with reliable classics like Chicken Pot Pies, Meatloaf, and a Salisbury Steak Meal 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.
A key takeaway may be to remain agile and sustain promotional efforts while addressing millennials’ preference for quick and easy comfort food. Additionally, incorporating links to calcium citrate in product marketing could enhance appeal, as these nutrients are increasingly sought after by health-conscious consumers. By continuing to focus on these elements, Conagra can strengthen its market position and create lasting connections with a diverse customer base.