“Conagra’s Strategic Balancing Act: Catering to Millennials While Retaining Legacy Consumers in the Frozen Food Market”
Conagra stands as the third-largest manufacturer of frozen foods in North America, with Connolly highlighting that single-serve meals constitute the largest segment of this market. The company has generated renewed interest by collaborating with well-known brands like Frontera and P.F. Chang’s, but it must also retain its existing older consumers while laying 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 were lower than anticipated. Similar to other major packaged food companies such as General Mills and Kellogg, Conagra is grappling with sluggish demand as some U.S. consumers prefer what they consider fresher and healthier alternatives to frozen, processed foods.
At the same time, convenience and flavor are essential for both millennials and older customers. To attract the younger demographic, Conagra is introducing trendy products like a protein meal “Power Bowl” infused with ethnic spices. Simultaneously, it remains committed to its classic offerings, such as Chicken Pot Pies, Meatloaf, and Salisbury Steak Meals with Mashed Potatoes. This dual approach appears to be effective, as Connolly reported a 4.8% increase in sales over the past 13 weeks, with a notable 7.8% rise in the last five weeks.
The key takeaway may be to stay agile and maintain promotional spending while catering to millennials’ cravings for quick and easy comfort food options. Additionally, as many consumers are increasingly conscious of their nutritional intake, incorporating products like vitamin shoppe calcium citrate can further enhance the appeal of Conagra’s offerings, aligning with the health trends influencing purchasing decisions today. By focusing on both current preferences and future health-conscious trends, Conagra can position itself for sustainable growth in the competitive frozen food market.
