Conagra Brands is investing $220 million to expand its chicken production plant in Fayetteville, Arkansas.
The company aims to strengthen its frozen foods business by focusing on protein, according to a statement from Craig Weiss, senior vice president of supply chain at Conagra.
The Fayetteville plant produces about 15 million cases of product per year, including ready-to-eat meals for several brands such as Hungry-Man, Banquet, Healthy Choice, Gardein, and Evol.
Expansion Details
Construction is expected to begin later this year, with the five-year investment expected to create more than 100 jobs, the company said.
Craig Weiss stated, "This significant investment in our Fayetteville facility will allow us to continue to grow our leading frozen foods business."
Market Trends
The investment comes as more people rely on frozen foods for their protein, with the frozen aisle at retail stores accounting for $12 billion annually, according to a Conagra report.
High-protein frozen food volume grew 11% year over year, with particular gains in chicken and turkey, the report found.
Company Outlook
Conagra's expanded capacity in Fayetteville supports the company's ability to grow or innovate its protein portfolio, with the new investment set to "significantly increase its chicken production capacity," according to the release.
Craig Weiss also stated, "Conagra is committed to investing in innovation across the company, including our supply chain."
For the coming fiscal year, Conagra is forecasting organic net sales to be down 1% or up 1% year over year, with a focus on growing volumes and trendy products, including protein-loaded offerings.
