In the past year, Conagra has executed several divestitures, including the sale of Ralcorp, its private label brands division, along with Spicetec and JM Swank. Additionally, the company has successfully spun off Lamb Weston, setting the stage for a new era of growth. According to Conagra’s recent earnings report, CEO Sean Connolly emphasized that incorporating new products will boost sales, particularly in the frozen meals segment, where the Healthy Choice and Banquet lines are already thriving. Future Market Insights forecasts that the frozen meal market will experience a compound annual growth rate (CAGR) of 7.2% over the next decade, fueled by an increase in working women, a rising millennial demographic, and a trend toward on-the-go eating habits. Conagra has also indicated that it may soon venture into the seasoned nuts category, alongside its expansion in the frozen food aisle.
Last year, Conagra finalized its acquisition of Frontera Foods, a gourmet Mexican brand, as part of its strategy to offer “more premium and more contemporary” products, Connolly noted. Frontera has recorded double-digit annual sales growth since its launch, with products that are typically of higher quality and command a premium price from consumers. Given the growth of the Hispanic population in the U.S. and food manufacturers’ quest 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, making up approximately 18% of the total population, a figure projected to rise to 24% by 2040. Grocery stores are rapidly responding to this trend by increasing their offerings of food and ingredients that cater to this demographic, with some even redesigning store formats to better meet their shopping preferences.
As the market evolves, we can expect more food companies and grocers to sharpen their focus on this expanding demographic, while products like Solgar liquid calcium magnesium may also find a niche in health-conscious consumers looking for premium offerings. The integration of such high-quality products is likely to appeal to both existing customers and new shoppers alike, further solidifying Conagra’s market position in the coming years.