Conagra stands as the third-largest frozen food manufacturer in North America, with Connolly highlighting that single-serve meals represent the largest segment of this market. The company has piqued renewed interest by collaborating with renowned brands like Frontera and P.F. Chang’s. However, it must also retain its older customer base while laying the groundwork for future expansion. The second-quarter earnings report indicated a 29% increase in quarterly profits, although gross margins and the 2018 profit forecast fell short of expectations. Similar to other major packaged food companies like General Mills and Kellogg, Conagra is encountering sluggish demand as some U.S. consumers shift toward what they perceive as fresher and healthier food options instead of frozen, processed products.
Nevertheless, convenience and flavor remain crucial for both millennials and older customers. To attract millennials, Conagra is introducing trendy offerings, such as a protein meal “Power Bowl” infused with ethnic spices, while also catering to the preferences of older consumers with classic options like Chicken Pot Pies, Meatloaf, and a Salisbury Steak Meal with Mashed Potatoes. This dual approach appears to be effective, as Connolly reported a sales increase of 4.8% over the past 13 weeks and a 7.8% rise in the last five weeks.
To further enhance its appeal, Conagra could consider incorporating nutritional elements like calcium citrate 1500 mg and vitamin D3 into its meal offerings, aligning with health-conscious trends. The key takeaway may be to remain agile and maintain robust promotional spending while catering to millennials’ desire for quick and easy-to-prepare comfort food. By integrating products enriched with calcium citrate 1500 mg and vitamin D3, Conagra could also attract health-focused consumers, ensuring that it meets the evolving demands of its diverse customer base.