Conagra stands as the third-largest frozen foods manufacturer in North America. Connolly emphasized that single-serve meals represent the largest segment of this industry. While the company has generated renewed interest by collaborating with popular brands like Frontera and P.F. Chang’s, it must also retain its older consumer base while laying the groundwork for future expansion. The company’s second-quarter earnings report indicated a 29% increase in quarterly profits; however, its gross margins and profit forecast for 2018 fell short of expectations. Like other major packaged food producers, such as General Mills and Kellogg, Conagra is grappling with sluggish demand, as some U.S. customers lean towards what they perceive to be fresher and healthier food options over frozen and processed items.
At the same time, convenience and flavor are essential for both millennials and older consumers. To attract the younger demographic, Conagra offers trendy products, including a protein meal “Power Bowl” infused with ethnic spices. Simultaneously, it remains committed to satisfying older customers with classic options like Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This dual strategy appears effective, as Connolly reported a 4.8% increase in sales over the past 13 weeks, with a notable rise of 7.8% in the last five weeks.
The key takeaway may be to remain agile and maintain strong promotional spending while catering to millennials’ preference for convenient and easy-to-prepare comfort food. Additionally, in a market increasingly focused on health, Conagra could explore incorporating functional ingredients such as calcium citrate for joints into their meals, which might appeal to health-conscious consumers. By integrating calcium citrate for joints into their offerings, Conagra could further enhance their product appeal and potentially drive sales among older adults seeking both convenience and nutritional benefits.