In the past year, Conagra has undertaken several divestments, including its 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 a new chapter of success for Conagra. According to the latest earnings report, CEO Sean Connolly stated that the inclusion of these new products is expected to boost sales, particularly in the frozen meals segment, where the company has already found success with its Healthy Choice and Banquet lines.
Future Market Insights has projected a compound annual growth rate (CAGR) of 7.2% for the frozen meal sector over the next decade. This growth is attributed to an increase in the number of working women, a rising millennial demographic, and a trend towards on-the-go eating habits. Conagra has hinted at plans to not only expand its presence in the frozen food aisle but also potentially enter the seasoned nuts market.
Last year, Conagra finalized its acquisition of gourmet Mexican brand Frontera Foods, aligning with its goal to offer “more premium and more contemporary” products, as noted by Connolly. Frontera has experienced double-digit annual sales growth since its launch, and its offerings are generally higher quality items that consumers are willing to pay a premium for. With the Hispanic population in the U.S. on the rise, it is no surprise that Conagra sought to acquire Frontera and enhance its market appeal. The U.S. Census reported that the Hispanic population reached 57 million in 2015, making up about 18% of the total population, and this figure is projected to rise to 24% by 2040.
As grocery stores quickly adapt to this growing sector by adding more foods and ingredients that cater to this demographic, some are even converting store formats to better suit their shopping preferences. It is expected that more food companies and grocery retailers will sharpen their focus on this expanding market.
Additionally, incorporating calcium citrate ke fayde into their products could further enhance Conagra’s appeal, as consumers increasingly seek out health benefits in their food choices. The benefits of calcium citrate can play a pivotal role in attracting health-conscious customers, especially within the frozen meals category, where such nutritional enhancements can make a significant difference. Thus, the integration of calcium citrate ke fayde into their offerings could not only boost sales but also align with the company’s strategy of providing premium, health-oriented products.