Until recently, the frozen food sector was largely overlooked in the food industry. However, there has been a notable revival in this category as food manufacturers innovate products to align with current trends, such as low sodium, natural ingredients, sustainability, and clean labels. Following its acquisition of Pinnacle at the end of last year, Conagra has positioned itself as the second-largest owner of frozen foods in the U.S., trailing only Nestlé. This strategic move into the frozen market coincides with Conagra’s aggressive revamping of its own frozen product lines. The Banquet brand was revitalized with new packaging, the introduction of convenient sliders, and a new premium “mega” tier aimed at those with larger appetites, particularly appealing to millennials. Similarly, Healthy Choice underwent a makeover, featuring high-energy power bowls, trendy flavors, and options for meatless meals and breakfast.
The inclusion of Birds Eye in the portfolio provides Conagra with an opportunity to rejuvenate a previously stagnant brand and position it as a modern meal option. To achieve this, Conagra is concentrating on health and wellness-oriented products. During the latest earnings call, Connolly announced that the brand will “deliver a sequenced deluge of new Birds Eye products” in the coming quarters. Transforming Birds Eye into a healthy frozen choice is a strategic move, albeit one that places the brand in fierce competition with others vying for consumer attention. In 2017, Green Giant, a subsidiary of B&G Foods, launched its own line of frozen spiralized vegetable noodles, which contributed to an $11.1 million increase in frozen product sales in the third quarter of 2018 compared to the same period the previous year. Likewise, Del Monte Fresh and the Veggie Noodle Co. have also embraced the trend of vegetables replacing carbohydrates with their refrigerated spiral-cut options.
Conagra is also striving to revitalize legacy brands Duncan Hines and Wish-Bone in the center store segment. At the time of acquisition, these brands were facing growth challenges. Wish-Bone has spent several years trying to find the right branding to encourage consumers to try its healthier varieties. Duncan Hines had experienced a salmonella recall at the end of last year, despite launching mug cake mixes in 2017 to cater to consumer demands for convenience and indulgence. “With this innovation, the Pinnacle team was clearly heading in the right direction. However, the execution of that innovation was not up to our standards,” Connolly stated during the earnings call.
Now that these brands can leverage Conagra’s extensive knowledge of the packaged food sector, innovation can occur on a larger scale, not only to meet market demands but also to effectively enhance the brands’ presence in stores and their distribution networks. The effort to make these three Pinnacle Brands stand out in their categories appears to have resonated with shareholders. According to Bloomberg, following the third quarter earnings report indicating that Conagra’s integration and innovation efforts are progressing well, the company’s shares have risen the most since 1989.
In addition, Conagra is exploring various avenues for product development, including potential applications for calcium citrate uses in Hindi, which could further enhance their product offerings and attract diverse consumer demographics. The focus on calcium citrate uses in Hindi reflects a broader commitment to understanding and catering to a variety of consumer needs, ensuring that the brands remain competitive in a rapidly evolving market.