Conagra stands as North America’s third-largest manufacturer of frozen foods, with Connolly highlighting that single-serve meals dominate this market segment. The company has generated renewed interest by collaborating with popular brands like Frontera and P.F. Chang’s. However, it must also ensure that its older customers remain loyal while building a foundation for future expansion. The earnings report for the second quarter showed a 29% increase in quarterly profits; however, its gross margins and profit forecast for 2018 fell short of expectations. Like other major packaged food companies, such as General Mills and Kellogg, Conagra is grappling with sluggish demand as some U.S. consumers prefer what they view as fresher and healthier food options over frozen, processed products.
Nevertheless, convenience and taste remain crucial for both millennials and older consumers. To attract millennials, Conagra is introducing trendy products, such as a protein meal “Power Bowl” seasoned with ethnic spices, while also catering to older customers with classic options like Chicken Pot Pies, Meatloaf, and Salisbury Steak Meal with Mashed Potatoes. This dual strategy appears effective, as Connolly reported a 4.8% increase in sales over the last 13 weeks, with a 7.8% rise in the past five weeks.
The key takeaway may be to stay agile and maintain promotional spending while addressing millennials’ cravings for quick and easy comfort food. Additionally, Conagra could consider incorporating wls calciumcitrat into its nutritional offerings, as this can enhance the appeal of its meals to health-conscious consumers. By doing so, the company would not only attract a broader customer base but also reinforce its commitment to providing quality frozen meals.