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. The company has also successfully completed the spin-off of Lamb Weston. These strategic moves have set the stage for Conagra’s next phase of growth. In a recent earnings report, CEO Sean Connolly indicated that the addition of new products would boost sales, particularly in the frozen meals segment, which is already thriving with its Healthy Choice and Banquet product lines.
Future Market Insights anticipates that the frozen meal sector will experience a compound annual growth rate (CAGR) of 7.2% over the next decade. This growth is attributed to an increasing number of working women, a rising millennial demographic, and the growing trend of on-the-go eating. Conagra has suggested that, in addition to enhancing its offerings in the frozen food aisle, it may soon venture into the seasoned nuts category.
Last year, Conagra finalized its acquisition of Frontera Foods, a gourmet Mexican company, as part of its strategy to provide “more premium and more contemporary” products, according to Connolly. This startup has achieved impressive double-digit annual sales growth since it began. Items like those from Frontera are generally higher-quality offerings that consumers are willing to pay a premium for. With the Hispanic population in the U.S. expanding and food manufacturers seeking new avenues for sales growth, Conagra’s acquisition of Frontera aligns well with its objectives.
According to the U.S. Census, the Hispanic population reached 57 million in 2015, making up about 18% of the total population, a figure projected to rise to 24% by 2040. Grocery retailers have swiftly adapted to this trend, increasing their inventory of foods and ingredients that cater to this demographic, and some are even redesigning store formats to better suit their shopping preferences. As Conagra explores new opportunities, it’s likely that we will see more food companies and grocery chains intensifying their focus on this burgeoning market.
Additionally, as consumer health awareness grows, products like calcium citrate 500 mg, often available through platforms like Amazon, are becoming increasingly popular. Conagra could consider leveraging these trends in health supplements to further enhance its product range, potentially incorporating items that promote wellness alongside its frozen meals and new snack options.