Dive Brief:
- Conagra Brands will introduce Frontera-branded bowls and skillet meals approved by Chef Rick Bayless who founded the startup acquired by the food giant last year, according to the Chicago Tribune.
- Frontera skillet meals and single-serving bowls will consist of chicken fajita, barbacoa taco and veggie taco meals.
- Conagra also will launch Healthy Choice Power Bowls, a premium extension of its Healthy Choice frozen meals offering antibiotic-free meat, whole grains and leafy vegetables.
Dive Insight:
Conagra has made several divestments in the past 12 month, including Ralcorp, the private label brands business, Spicetec and JM Swank. It’s also completed a spin-off of Lamb Weston. These move have paved the way for the company’s next chapter of success. Based on its recent earnings report, Conagra CEO Sean Connolly said adding these new items will help increase sales, especially in its frozen meals category, where it’s already succeeding with its Healthy Choice and Banquet lines.
Future Market Insights projected the frozen meal segment would have a CAGR of 7.2% during the next decade, driven by more working women, a growing millennial population and more on-the-go eating habits. Conagra hinted that in addition to expanding its presence in the frozen aisle, another category it may soon enter is seasoned nuts.
Last year, Conagra closed on its acquisition of gourmet Mexican company Frontera Foods as part of its efforts to sell "more premium and more contemporary," according to Connolly. The startup had achieved double-digit annual sales growth since its inception. Products such as those from Frontera typically are higher quality products that consumers are willing to pay extra for.
With the country's Hispanic population growing and food manufacturers looking for ways to juice sales, it was not surprising to see Conagra purchase Frontera or find ways to expand its appeal. The U.S. Census reported the Hispanic population reached 57 million in 2015, representing approximately 18% of the country's population. This level is expected to increase to 24% by 2040. Grocery stores have been quick to jump into the sector, adding more food and ingredients that appeal to this market and even converting some stores into formats better suited for their shopping needs. Expect more food companies and grocers to increase their focus on this growing demographic.