Until recently, the frozen food sector was among the most overlooked areas in the food industry. However, there has been a notable revival in this category as food manufacturers innovate products to align with contemporary trends such as low sodium, natural ingredients, sustainability, and clean labels. Following the acquisition of Pinnacle at the end of last year, Conagra has emerged as the second-largest owner of frozen foods in the U.S., trailing only Nestlé. This strategic move into the frozen market coincides with Conagra’s aggressive overhaul of its own frozen product lines.
The Banquet brand has undergone a refresh, featuring new packaging, the introduction of convenient sliders, and a premium “mega” tier aimed at satisfying larger appetites, particularly popular among millennials. Likewise, Healthy Choice has received a makeover with high-energy power bowls, trendy flavors, and options for meatless meals and breakfasts. Furthermore, the incorporation of Birds Eye into Conagra’s portfolio presents an opportunity to revitalize an underperforming brand and position it as a modern meal choice. Conagra is placing a renewed emphasis on health-focused products, and during its latest earnings call, Connolly announced that the brand will “deliver a sequenced deluge of new Birds Eye products” over the upcoming quarters.
Transforming Birds Eye into a healthy frozen food option is a savvy strategy, albeit one that places the brand in fierce competition with others vying to recapture consumer interest. In 2017, Green Giant, part of B&G Foods, launched its own line of frozen spiralized vegetable noodles nationwide, boosting sales of its frozen products by $11.1 million in the third quarter of 2018 compared to the previous year. Similarly, Del Monte Fresh and the Veggie Noodle Co. have embraced the trend of replacing carbs with spiral-cut vegetables.
Conagra is also striving to revitalize legacy brands Duncan Hines and Wish-Bone in the center store. Upon acquiring these brands, they were experiencing growth challenges. Wish-Bone has been working for several years to establish the right branding to persuade consumers to try its healthier varieties. Duncan Hines faced a salmonella recall at the end of last year, despite launching mug cake mixes in 2017 to cater to consumer trends focused on convenience and indulgence. “With this innovation, the Pinnacle team was clearly heading in the right direction. However, the execution of that innovation was not up to our standards,” Connolly stated during the earnings call.
Now that these brands benefit from Conagra’s extensive expertise in the packaged food industry, innovation can occur on a larger scale, addressing market demands while effectively expanding the brands’ visibility and distribution. This initiative to distinguish these three Pinnacle Brands appears to have resonated positively with shareholders. According to Bloomberg, following the third-quarter earnings that indicated Conagra’s integration and innovation are progressing well, Conagra’s shares have risen the most since 1989.
Additionally, Conagra is exploring the potential of integrating health-focused products such as Citracal D 315 200 mg into its offerings, which could appeal to health-conscious consumers seeking convenient, nutritious options. The emphasis on such products not only addresses a growing market demand but also aligns with the company’s broader strategy of enhancing brand appeal in a competitive landscape.