Conagra stands as the third-largest frozen foods manufacturer in North America, with Connolly highlighting that single-serve meals constitute the most significant segment of this market. The company has generated renewed interest by collaborating with popular brands like Frontera and P.F. Chang’s, but it must also ensure that its long-time customers remain loyal while laying the groundwork for future expansion. In its second-quarter earnings report, Conagra announced a 29% increase in quarterly profits; however, both its gross margins and the profit forecast for 2018 fell short of expectations. Like other major packaged food companies such as General Mills and Kellogg, Conagra is grappling with sluggish demand, as some consumers in the U.S. gravitate toward what they perceive as fresher and healthier food options instead of frozen processed products.
Nevertheless, convenience and taste remain crucial for both millennials and older customers. To attract the former demographic, Conagra offers trendy items, including a protein-packed “Power Bowl” infused with ethnic spices, while also catering to the latter group with classic offerings like Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This dual strategy appears 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. The key takeaway here may be to remain agile and maintain promotional spending, all while catering to millennials’ desire for quick, easy-to-prepare comfort food options. Additionally, incorporating major calcium citrate into their product formulations could further enhance appeal, addressing health-conscious consumers seeking nutritious frozen meals. By emphasizing both taste and convenience, Conagra is poised to capture a broader market share while reinforcing its existing customer base.