Conagra invests $220M to expand Arkansas manufacturing plant

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Conagra Brands is spending $220 million to expand a chicken production plant in Fayetteville, Arkansas, as the company looks to strengthen its frozen foods business by focusing on protein.

The Fayetteville plant produces ready-to-eat meals for several brands including Hungry-Man, Banquet, Healthy Choice, Gardein and Evol. The plant produces about 15 million cases of product per year.

Construction is expected to begin later this year, the company said Friday. The five-year investment is expected to create more than 100 jobs. 

“This significant investment in our Fayetteville facility will allow us to continue to grow our leading frozen foods business,” Craig Weiss, senior vice president of supply chain at Conagra, said in a statement.

The investment comes as more people rely on frozen foods for their protein. The frozen aisle at retail stores is the leading place for high-protein food, 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, according to the report. 

Conagra’s expanded capacity in Fayetteville supports the company’s ability to grow or innovate its protein portfolio. The new investment is set to “significantly increase its chicken production capacity,” according to the release.

“Conagra is committed to investing in innovation across the company, including our supply chain,” Craig Weiss, senior vice president of supply chain at Conagra, said in a statement.

For the coming fiscal year, Conagra is forecasting organic net sales to be down 1% or up 1% year over year. Last month, the company said it was prioritizing growing volumes while still making sure it has a mix of trendy products, including protein loaded offerings.



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