- ConAgra closed on its acquisition of the grocery brands under the gourmet Mexican company Frontera Foods on Monday, according to a Chicago Tribune article.
- Frontera is ConAgra's first acquisition since the company shifted its headquarters from Omaha to Chicago in June.
- The gourmet Mexican food company aligns with ConAgra's determination to overhaul its portfolio with more "more premium and more contemporary" products, Sean Connolly, ConAgra's president and CEO, told the Chicago Tribune.
Frontera executives wouldn't disclose the company's actual sales numbers to the Chicago Tribune, but one exec said the Mexican food company had achieved double-digit annual sales growth since its inception, the newspaper reported.
That's exactly the type of top-line growth ConAgra needs after reporting a 9.5% dip in fourth-quarter net sales in June. The company's consumer brands segment also posted a 12% decrease in quarterly revenue.
Not only has ConAgra chosen a fast-growing company with a passionate fan base in Chicago, but by aligning with Mexican food, the company has entered another segment primed for growth. That growth stems from a rapidly expanding Hispanic population in the U.S. and consumers' desire for Hispanic flavors.