Nestle may have gotten the menu right, but its timing was off. When young consumers came back to the frozen food aisle last year, the company’s supply chain wasn’t ready. The result: It lost market share to rivals.

Jeff Hamilton, who heads Nestle’s U.S. food business, said in an interview the company did not have the manufacturing capacity ready to meet extra demand for its Stouffer’s Fit Kitchen and Lean Cuisine meals. He described it as “sudden, significant and beyond our expectations.”

To catch up, Nestle recently increased capacity at several of its U.S. factories, including making adjustments to its plants and adding a new line in its factory in Jonesboro, Arkansas, Hamilton said.

“That doesn’t mean we’re not close to the edge, but I think we’re one step ahead from where we were,” he said.

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