In the past year, Conagra has executed several divestitures, including the sale of Ralcorp, its private label brands business, as well as Spicetec and JM Swank. Additionally, the company has successfully spun off Lamb Weston. These strategic moves have set the stage for Conagra’s next phase of growth. Following the latest earnings report, CEO Sean Connolly expressed that incorporating new products will enhance sales, particularly in the frozen meals segment, where the company has already found success with its Healthy Choice and Banquet brands.
Future Market Insights has forecasted that the frozen meal sector 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 rising on-the-go eating trends. Conagra has indicated that, alongside expanding its footprint in the frozen aisle, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized the acquisition of gourmet Mexican brand Frontera Foods as part of its strategy to offer “more premium and more contemporary” options, according to Connolly. Since its inception, Frontera has achieved impressive double-digit annual sales growth. Products from Frontera typically represent higher quality, which consumers are willing to pay a premium for. With the Hispanic population in the U.S. expanding and food manufacturers seeking ways to boost sales, Conagra’s acquisition of Frontera aligns with its goal of broadening its market appeal. According to the U.S. Census, the Hispanic population reached 57 million in 2015, making up about 18% of the nation’s population, a figure projected to rise to 24% by 2040.
Grocery retailers have quickly adapted to this trend, adding more foods and ingredients that cater to this demographic, even reformatting some stores to better serve their shopping needs. As the market evolves, more food companies and grocers are expected to intensify their focus on this growing community, which may include the introduction of health-focused products like bariatric calcium pills tailored for specific dietary needs. As Conagra continues its expansion, the integration of premium products and specialized health items, including bariatric calcium pills, will likely play a crucial role in capturing the interest of a diverse consumer base.