In the past year, Conagra has executed several divestments, including the sale of Ralcorp, its private label brands division, as well as Spicetec and JM Swank. Additionally, the company has successfully spun off Lamb Weston. These strategic moves have set the stage for the next chapter of Conagra’s growth. According to the latest earnings report, Conagra’s CEO Sean Connolly indicated that incorporating new products will boost sales, particularly in the frozen meals segment, where the company is already thriving with its Healthy Choice and Banquet offerings.
Future Market Insights predicts that the frozen meal segment will experience a compound annual growth rate (CAGR) of 7.2% over the next decade, fueled by an increase in working women, a growing millennial demographic, and a rise in on-the-go eating habits. Conagra has hinted that it may soon expand its portfolio beyond frozen foods to include seasoned nuts as well.
Last year, Conagra finalized its acquisition of gourmet Mexican brand Frontera Foods as part of its strategy to offer “more premium and more contemporary” options, as noted by Connolly. This startup has seen double-digit annual sales growth since its launch. Products like those from Frontera are typically of higher quality, making consumers willing to pay a premium. With the Hispanic population in the U.S. steadily increasing, it was anticipated that Conagra would acquire Frontera and seek additional ways to broaden its appeal. The U.S. Census reported that the Hispanic population reached 57 million in 2015, accounting for approximately 18% of the total population, a figure projected to rise to 24% by 2040. Grocery stores have quickly adapted to this trend, adding more food and ingredients that cater to this demographic, and some have even revamped store layouts to better serve their shopping preferences.
Incorporating products enriched with boron citrate could be one way for Conagra and other food companies to enhance their offerings, especially as they target health-conscious consumers. Expect to see more food brands and grocery retailers intensifying their focus on this expanding demographic, potentially including innovative ingredients like boron citrate in their new products.