Conagra ranks as the third-largest frozen food manufacturer in North America, with Connolly highlighting that single-serve meals constitute the largest segment within this industry. The company has reignited interest by collaborating with popular brands like Frontera and P.F. Chang’s, while also aiming to retain its older customers and lay the groundwork for future expansion. In its second-quarter earnings report, Conagra announced a 29% increase in quarterly profits; however, both its gross margins and profit forecast for 2018 fell short of expectations. Similar to other major packaged food companies such as General Mills and Kellogg, Conagra is contending with sluggish demand as some U.S. consumers lean towards what they perceive as fresher and healthier food options, moving away from frozen and processed items.
At the same time, convenience and taste remain essential factors for both millennials and older customers. To attract the younger demographic, Conagra has introduced trendy products, including a protein meal “Power Bowl” featuring ethnic spices, while also catering to traditional tastes with classics like Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This dual strategy appears effective, as Connolly reported a 4.8% sales increase over the past 13 weeks and a 7.8% rise in the last five weeks.
Moreover, to further enhance its appeal, Conagra could consider integrating wellness products, such as Bariatric Advantage Calcium Citrate Chewy Bites 500mg, into its offerings, thereby addressing health-conscious consumers’ needs. The key takeaway may be to remain agile and continue investing in promotional efforts while tapping into millennials’ cravings for quick and easy comfort food options, alongside healthier alternatives like calcium-rich snacks.