Conagra stands as the third-largest frozen foods producer in North America, with Connolly highlighting that single-serve meals constitute the largest segment of this market. The company has garnered renewed interest by collaborating with prominent brands like Frontera and P.F. Chang’s, while also striving to retain its older customers and lay the groundwork for future expansion. The earnings report for the second quarter indicated a 29% increase in quarterly profits; however, gross margins and the 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 are opting for what they perceive to be fresher and healthier food options over frozen, processed alternatives.
At the same time, convenience and flavor remain essential for both millennials and older consumers. Conagra is catering to the younger demographic with trendy offerings, including a protein meal “Power Bowl” that incorporates ethnic spices and calcium citrate 950 for added nutritional benefits. Simultaneously, the company is maintaining its focus on its traditional favorites, such as Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This approach appears to be effective, as Connolly reported a 4.8% sales increase over the past 13 weeks, with an even more impressive 7.8% rise in the last five weeks. The takeaway from this strategy may be the importance of adaptability and maintaining robust promotional efforts while addressing millennials’ cravings for quick and convenient comfort food options, potentially enriched with ingredients like calcium citrate 950 for added health appeal.