Conagra Brands Invests $220 Million in Chicken Production Plant Expansion
Conagra Brands is making a significant investment of $220 million to expand its chicken production plant in Fayetteville, Arkansas. This move is part of the company’s strategy to strengthen its frozen foods business, with a focus on protein.
The Fayetteville plant currently produces ready-to-eat meals for popular brands such as Hungry-Man, Banquet, Healthy Choice, Gardein, and Evol, producing approximately 15 million cases of product annually.
Construction on the expansion is set to begin later this year, with the company anticipating the creation of over 100 new jobs over the next five years.
“This significant investment in our Fayetteville facility will allow us to continue to grow our leading frozen foods business,” said Craig Weiss, senior vice president of supply chain at Conagra.
As more consumers turn to frozen foods for their protein needs, Conagra’s investment comes at a strategic time. The frozen aisle in retail stores is a key destination for high-protein food, accounting for $12 billion in sales annually, according to a report by the company.
The demand for high-protein frozen foods has seen an 11% year-over-year growth, particularly in chicken and turkey products, as highlighted in the report.
The expanded capacity at the Fayetteville plant will support Conagra’s efforts to grow and innovate its protein portfolio. The company aims to significantly increase its chicken production capacity with this new investment.
“Conagra is dedicated to investing in innovation throughout our company, including our supply chain,” added Craig Weiss.
Looking ahead, Conagra forecasts a slight decline or increase in organic net sales for the coming fiscal year. The company is prioritizing volume growth while also ensuring a mix of trendy products, including protein-rich offerings.