Convenience stores have long been a good way for Hormel Foods to sell some of its snack foods, but now the company sees it as an opportunity to further its reach.
There were days when such stores were viewed more as a place for consumers to grab a package of Corn Nuts or a jar of Planters peanuts or cashews. And that was good for Hormel, since both brands are part of Hormel’s offerings.
But convenience stores are not the same as they used to be, particularly prior to the COVID-19 pandemic, and consumers are embracing those changes, Hormel’s Mark Ourada, group vice president, foodservice, said during the BofA Securities Consumer & Retail Conference on March 13.
These changes can include increased sales of the company’s turkey, pork and other animal protein products. Hormel Foods is the parent company of Jennie-O Turkey Store, the largest turkey producer in the United States.
Mark OuradaCourtesy Hormel Foods
Ourada said that presently, restaurant traffic might be down slightly, but consumers are still eating away from home.
“We see that convenience stores are very strong, and we play very strong in convenience,” he said.
“Convenience stores have changed and they continue to, I’ll say, up their game. As we’ve noticed coming through (the COVID-19 pandemic), that people will really stop there for a good meal, and there’s really good food being offered at convenience (stores). That fits right into our wheelhouse of the product offerings that we’ve got.”
During the conference, Hormel Foods Chief Financial Officer Jacinth Smiley, also addressed the apparent increase in consumer demand for proteins, and if more protein-rich meals are going to be served at convenience stores, that is a space Hormel wants to have a strong presence in.
“I feel if they’re going to eat more protein … Hormel Foods has all different kinds of protein. We have protein that’s plant-based, and then we have all different manners of meat protein as well, with great poultry and beef and pork,” Smiley said. “I think we are well positioned if that’s where consumers are turning to, because we have a very strong protein portfolio.”
In addition to Jennie-O Turkey Store, Planters and Corn Nuts, other Hormel Foods brands include Applegate, Justin’s, Black Label Bacon, Bacon 1, Columbus Craft Meats, Spam, Dinty Moore, Fuse Burger and Natural Choice.
