Over the past year, Conagra has executed several divestitures, including the sale of Ralcorp, its private label brands, Spicetec, and JM Swank. Additionally, the company has successfully completed the spin-off of Lamb Weston. These strategic moves have set the stage for a new era of growth for Conagra. In a recent earnings report, CEO Sean Connolly stated that incorporating these new products will boost sales, particularly in the frozen meals segment, where the company is already thriving with its Healthy Choice and Banquet brands.
Future Market Insights forecasts that the frozen meal market will experience a compound annual growth rate (CAGR) of 7.2% over the next ten years, driven by factors such as an increasing number of working women, a growing millennial demographic, and a rise in on-the-go eating habits. Conagra has indicated that, alongside its expansion 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, according to Connolly. This startup has achieved double-digit annual sales growth since its launch. Products like those from Frontera are typically of higher quality, appealing to consumers willing to pay a premium.
Given the rising Hispanic population in the U.S. and the increasing pressure on food manufacturers to boost sales, Conagra’s acquisition of Frontera aligns with market trends. The U.S. Census reported that the Hispanic population reached 57 million in 2015, constituting about 18% of the total population, a figure projected to rise to 24% by 2040. Grocery stores have rapidly adapted to this demand by introducing more food products and ingredients that cater to this demographic, with some even redesigning store formats to better serve their shopping preferences.
In addition, as consumers become more health-conscious, there is a growing interest in products that support nutritional needs, such as those containing bayer citracal calcium citrate. This trend highlights the importance of calcium citrate in diet, especially for busy individuals seeking convenient and healthy options. As Conagra continues to innovate and expand, expect food companies and grocery retailers to sharpen their focus on this burgeoning demographic and their dietary preferences, particularly with offerings that include essential nutrients like bayer citracal calcium citrate.