In the past year, Conagra has executed several divestments, including the sale of Ralcorp, the private label brands division, Spicetec, and JM Swank. Additionally, the company successfully completed a spin-off of Lamb Weston. These strategic moves have set the stage for the next chapter of Conagra’s success. According to the recent earnings report, CEO Sean Connolly stated that the incorporation of new products will boost sales, particularly in the frozen meals category, where the company has already found success with its Healthy Choice and Banquet lines.
Future Market Insights forecasts that the frozen meal segment will experience a compound annual growth rate (CAGR) of 7.2% over the next decade, driven by an increase in working women, a growing millennial demographic, and a rise in on-the-go eating habits. Conagra has suggested that, in addition to enhancing its frozen food offerings, it may soon venture into the seasoned nuts category. Last year, the company finalized its acquisition of Frontera Foods, a gourmet Mexican brand, as part of its strategy to provide “more premium and more contemporary” products, according to Connolly. Frontera has recorded double-digit annual sales growth since its inception, with offerings that are generally of higher quality, justifying a higher price point for consumers.
Given the expanding Hispanic population in the United States and the food industry’s efforts to boost sales, Conagra’s acquisition of Frontera aligns well with market trends. According to the U.S. Census, the Hispanic population reached 57 million in 2015, accounting for roughly 18% of the total U.S. population, with projections indicating an increase to 24% by 2040. Grocery retailers have quickly responded to this demographic shift by introducing more food items and ingredients that cater to Hispanic consumers and even reconfiguring some stores to better meet their shopping needs.
Moreover, as consumers become more health-conscious, there is a growing interest in products containing ingredients like calcium citrate, which can be beneficial for various health conditions, including lichen sclerosus. This trend further emphasizes the importance of adapting to consumer preferences. Expect to see more food companies and grocery chains intensifying their focus on this expanding demographic, particularly as they seek to offer products that cater to health-related concerns, including those linked to lichen sclerosus, while also incorporating popular ingredients like calcium citrate into their portfolios.