It’s been a tumultuous few years for the packaged food industry, particularly for Chicago-area companies. Chicago-based Conagra Brands, known for Healthy Choice frozen meals and Slim Jim meat sticks, warned shareholders Wednesday that the company’s financials would get worse before it got better .Conagara CEO John Brase, who stepped into his role in June, said during the earnings call that a lack of investment into its portfolio was a problem and that it was "too large and too complex for too long."“None of these issues developed overnight, and none will be solved overnight,” Brase said. “But they are solvable, and we're going to take bold, decisive actions to address them head-on.”Conagra reported a net loss of $1.9 billion for the fiscal year ended May 31. Net sales for the fiscal year was $11.3 billion, a 2.9% year-over-year decline.For the fourth quarter, it reported a net loss of $1.6 billion, compared to a profit of $256 million for the same period a year earlier. And net sales were an estimated $2.9 billion, up 3.6% compared to last year. Conagra, along with Chicago companies Kraft Heinz and Mondelez International, have struggled to quickly adjust to changing consumer tastes, while managing volatile economic conditions. Mondelez CEO Dirk Van de Put said in an April earnings call that U.S. consumer confidence "remains quite low. ... Purchasing power is up, but the consumer remains very concerned about affordability, economic outlook and job security." The company had reported higher revenue but mostly because its international business did well, offsetting the performance of its North American business.Meanwhile, Kraft Heinz CEO Steve Cahillane said in May that its first quarter performance showed "early signs of momentum," but "consumer sentiment remains low due to current macroeconomic and geopolitical conditions."Consumers are no longer “cutting back, but recalibrating what they buy,” according to a July report by Chicago-based research firm Circana. A well-documented emphasis on health and wellness for consumers, partially motivated by the use of GLP-1 drugs and an interest in a higher protein diet, has left companies unsure of how to proceed with its legacy products.There’s also been a backlash to legacy brands owned by companies like Conagra and Kraft Heinz. A McKinsey Co. report in April found due to economic pressures, customers are increasingly gravitating to retailer’s private label brands — and retailers are obliging, by investing more into those labels.“Rather than rejecting legacy brands outright, consumers are demanding proof of value: simpler ingredients, clearer benefits and fewer perceived trade-offs,” according to the report. And because consumers are willing to veer away from recognizable brands to try newer “disruptor” options, “big brands lose to private label on price and to small brands on function."Chicago's biggest food companies have been leaning more into consumer trends and product collaborations intended to feed excitement.In May, Kraft Heinz launched “Snackables,” joining the Lunchables brand, that is the “first ever double snack pack designed to split, swap and share.” The company also rolled out Capri-Sun juices with electrolytes, a protein version of its Mac Cheese and a line of instant noodles, called KD Ramen, available in Canada. And in June, Kraft Heinz announced a collaboration with Heineken. For a limited time, customers can buy a six-pack that includes five beers and one bottle of Heinz ketchup.Mondelez has poured money into advertising and revamped some of its staple brands.They announced a collaboration with the popular K-pop group BTS, launching limited-edition Oreo flavors, as well as rebranding its classic Newtons, updating its packaging and emphasizing that the product is made with real fig. Last month, Mondelez introduced Sour Patch Kids Besties, where four gummies are linked together as though they're holding hands."[Customers] are becoming more intentional and efficient,” Sally Lyons Wyatt, global executive vice president and chief advisor at Circana, said in a report. “Whether through pack-size optimization, private label and brand selection, AI-assisted shopping, or reducing waste, shoppers are finding smarter ways to achieve the outcomes they want while navigating persistent financial pressures." Related Chicago food companies like Mush, Farmer’s Fridge flourish as consumers move away from processed foods Amid rising gas prices, inflation, some Chicagoans have given up bargain-hunting ...read more read less