In the past year, Conagra has executed several divestitures, including the sale of Ralcorp, the private label brands division, as well as Spicetec and JM Swank. The company has also successfully spun off Lamb Weston, setting the stage for a new chapter of growth. According to Conagra’s recent earnings report, CEO Sean Connolly indicated that the addition of new products will boost sales, particularly within the frozen meals sector, where the company is already thriving with its Healthy Choice and Banquet brands.
Future Market Insights has forecasted that the frozen meal segment will experience a compound annual growth rate (CAGR) of 7.2% over the next decade, fueled by an increasing number of working women, a growing millennial demographic, and rising on-the-go eating habits. Conagra has suggested that alongside expanding its frozen offerings, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized its acquisition of gourmet Mexican brand Frontera Foods as part of its strategy to offer “more premium and more contemporary” products, as noted by Connolly. Since its establishment, Frontera has achieved double-digit annual sales growth, with products that are generally of higher quality, which consumers are willing to pay a premium for. Given the growth of the Hispanic population in the U.S. — which reached 57 million in 2015, accounting for about 18% of the total population and projected to rise to 24% by 2040 — Conagra’s acquisition of Frontera aligns with food manufacturers’ efforts to enhance sales.
Grocery stores have swiftly adapted to this trend by expanding their offerings and even modifying some locations to better cater to this demographic. As food companies and grocers increasingly focus on this segment, it is also worthwhile to mention that there is a growing interest in health supplements, such as Solgar calcium citrate with vitamin D3, which many consumers are incorporating into their diets. This trend reflects a broader shift toward health-conscious choices, similar to the premium products Conagra aims to provide. Expect to see more companies and retailers directing their efforts toward this expanding market.
Furthermore, the benefits of supplements like Solgar calcium citrate with vitamin D3 are being recognized by consumers, who are increasingly looking for products that support their health, thus paralleling the premium positioning of brands like Frontera. As consumer preferences evolve, the intersection of quality food products and health supplements will likely become a significant focus for the industry.