Grocery inflation continues to fall in the U.S., but its overarching impact has led to a consistent downturn in consumer spending, and that trend is likely to continue into the holiday season, according to major food manufacturers, retailers, and consultants.
Chicago, Illinois, U.S.A.-based Conagra, which produces frozen seafood brands Van de Kamp’s and Mrs. Paul’s – along with other major food brands such as Healthy Choice and Birds Eye – recently reported that its fiscal first-quarter 2024 net sales were flat compared to the prior year at USD 2.9 billion (EUR 2.7 billion), while organic net sales decreased by 0.3 percent.
The reason for the decline was a 6.6 percent decrease in volume, largely due to an “industry-wide slowdown in consumption and recent consumer behavior shifts,” the company said.
Conagra’s gross profit increased 14.3 percent to USD 823 million (EUR 777 million) in the quarter, however, primarily due to “inflation-driven pricing” that went into effect earlier in the year, the company said. The company’s gross margin also increased 354 basis points to 28.3 percent in the quarter, and its adjusted gross margin increased 272 basis points to 27.6 percent.
Though gross metrics improved, Conagra’s uninspiring sales performance reflected national retail trends, as overall frozen seafood retail sales dropped 7.7 percent in August to USD 619 million (EUR 584 million), with volume in the category falling ...
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