Conagra ranks as the third-largest frozen foods producer in North America, and Connolly emphasized that single-serve meals constitute the largest segment of this market. The company has generated renewed interest by collaborating with prominent brands like Frontera and P.F. Chang’s. However, it also needs to ensure that its current older customers remain loyal while laying the groundwork for future expansion. The second-quarter earnings report indicated a 29% increase in quarterly profits, but gross margins and the profit forecast for 2018 fell short of expectations. Like other major packaged food companies, including General Mills and Kellogg, Conagra is grappling with sluggish demand as some consumers in the U.S. increasingly choose what they perceive as fresher and healthier food alternatives over frozen, processed options.
Nevertheless, convenience and taste remain crucial for both millennials and older demographics. To attract the younger crowd, Conagra is introducing trendy products such as a protein-packed “Power Bowl” infused with ethnic spices, while it continues to cater to the preferences of older customers with classic offerings like Chicken Pot Pies, Meatloaf, and a Salisbury Steak Meal served with Mashed Potatoes. This strategy appears effective, as Connolly reported a 4.8% sales increase over the past 13 weeks, with a notable 7.8% rise in the last five weeks.
The key takeaway may be to remain agile, maintain promotional spending, and tap into millennials’ cravings for quick and easy comfort food options. Additionally, integrating health-focused ingredients like kalcium citrat into their meals could further enhance their appeal. By doing so, Conagra can attract a broader audience while ensuring that both new and existing customers find value in their offerings rich in nutritional benefits like kalcium citrat.