Conagra targets the view of budget shoppers with new frozen food lineup

Congrara Brands, Inc. tries to try.

Frozen meals, including individual and multi -service meals, are scheduled to reach a gluten -free meals, to the e -commerce stores and outlets in June, where the company tries to reversed the successive declines in the reported clear sales. During the third fiscal quarter, the three -month period ending in February, net sales decreased by 6.3 % on an annual basis, while net organic sales decreased by 5.2 %.

The company is confident in its offers, as it promotes in April that “its frozen products are ideal for consumers who are looking to save money and enjoy a delicious meal.” However, there is a challenge to capture these shoppers.

Industry analysts told Fox Business that Conagra is moving in a difficult scene, as more Americans cook at home due to economic concerns. Meanwhile, high-service restaurants-which also appeal to consumers looking for comfort-strengthens the power of deals to increase traffic in the store.

More Americans resort to cooking at home with the weight of economic interests

Both the current challenges of the company that consumers want to spend money on a frozen meal, which may be comfortable but not always cheaper than fresh ingredients, or a deal in a fast local restaurant for service, according to the Bank of America Securities Peter Galbo.

The problem lies in the frozen meals that the value is not the same as it was, according to Galbo, who indicated that the bottled food industry has raised prices by 25 % to 30 % between 2021 and 2024.

“It provides you with comfort at a distinct price for cooking at home,” said Galbo.

When comparing the paid price for a certain amount of calories, it is possible that it is likely that it is cheaper to provide meals at home from scratch. There will be no more food only when reaching the zero point, which leads to food residue, but it is likely to be cheaper based on the price of calories, “according to Galbo.

Earlier this month, with concerns about the economy spread throughout families, CEO Camble Mick Beachzen said to analysts during the company’s profit call in the third quarter of the company since early 2020. ”

Grocery customer stores at a grocery store on September 10, 2024 in San Rafael, California. (Justin Sullivan / Getty Emokires / Getty Emoz)

Despite the ongoing negotiations between President Donald Trump and the main commercial partners, the uncertainty and fluctuations that still exist in the market are already forced most of the respondents to survey to “explore a set of personal financial behaviors to protect their pocket concerns,” according to Consulting McKinsey, which conducted a survey in May, constitutes common concepts. For consumers.

Buy now, and to pay the use later to the grocery, almost double as consumers struggle with food costs

Meanwhile, consumers were immersed simultaneously from ads about deals in fast restaurants such as McDonald’s and Taku Bell, according to Jalbo.

“The calories you get from that are higher than what you get a frozen meal, many of them. For a equivalent price, you will get more calories in relation to what is the frozen meal,” he said, adding that this is the competitive group.

He added: “If you are thinking about what is competing with homogeneous meals. It is against food at home, it is against the fast service restaurants. Therefore, the value proposal for the consumer is not what it was.”

Fluenal dining corridor in the fresh Amazon grocery store in Shomburg, Illinois, on Monday, July 24, 2023. (Christopher Delvis / Bloomberg via Getti Earth / Pictures)

In order for the company to compete effectively, Conagra tries to stimulate consumers who remain “fat” with innovation, and by presenting “some high -quality promotions.”

Conagra, CEO of Conagra, told April that the company has witnessed behaviors for years, “as it got the features of features in the family, you had the value of searching for behavior, people looking for barters.”

He added: “This was in place, and everything was from the beginning about things like more use of remains, things like that. So that was with us. We have invested to overcome some of these challenges.”

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Aaron Sondaram, Senior Vice President and stock analyst at CFRA Research.

Sondaram said: He is also trying to seduce the most healthy consumer through “tends to target food preferences with more gluten, plant and plant options.” In 2024, Conagra was one of the first major food companies that presented a suitable label for the GLP-1 on his healthy selection line, which is “a smart step, from our point of view, given the high demand for anti-obese drugs such as OzemPIC”, added Sundaram.

While he agreed that frozen meals may not always overcome cooking at home on the price, he indicated that the upward trend is that it “provides a strong value and the longest validity age, and can help control a portion and reduce waste.”