Conagra Brands Inc. plans to expand into new segments and build on snack sales growth.
The Chicago-based company has a wide portfolio of brands, including Orville Redenbacher, Slim Jim, Duncan Hines, Kid Cuisine and Peter Pan.
The company is identifying opportunities to innovate in “neglected coves,” or “big category segments that are growing at a very robust rate,” said Thomas M. McGough, co-chief operating officer and executive vice-president, according to Food Business News.
Fries is one of these categories.
“Everybody loves fries, and we’re going to attack this three ways,” Mr. McGough said during the company’s investor day on April 10. “First, with Slim Jim Fire Fries, big, bold, spicy with the iconic Slim Jim snap.”
For brands to grow, they must evolve out of their legacy formats, he said.
Bigs, another Conagra brand, is also launching a fries product with nacho cheese and ranch flavors. And Andy Capp’s will launch Hot Munchies baked corn and potato snacks, said McGough.
In the latest quarter, Conagra’s snack sales grew nearly 8%, or 14% on a two-year basis, with growth across the entire snacking portfolio, he said.
“As much as we’ve done, we are just getting started,” he said. “Our categories are supported by strong underlying consumer trends, namely all things protein, plant-based nutrition and what we call ‘permissible indulgence.’”