Hormel Foods CEO James Snee said the diversified food company has identified six key categories for growth – three of which are related to its poultry and pork products.
Speaking during the Consumer Analyst Group of Europe (CARE) annual conference on March 21, Snee said Hormel, which is the parent company of Jennie-O Turkey Store, Applegate, Black Label Bacon and Spam, said that ground turkey, meat snacks, and natural and organic meats are among the categories that “present a very compelling opportunity to build our brands and deliver continued growth.”
Those categories are all ones where Hormel Foods has a significant presence and that keeps getting larger.
Building the brands
In order to help the growth of those products, Snee said that the company is stepping up its marketing efforts.
“We know that brands need consistent support to help them grow, which is why we have increased our advertising expense over the past four years, by strong double digits each year,” he said.
Stance on acquisitions
Snee stated that Hormel Foods has grown largely through acquisitions, that include Applegate, Muscle Milk, Wholly Guacamole and Skippy.
He said Hormel Foods will continue to eye potential acquisitions, but also offered shareholders reassurance that Hormel would not be acquired by another company.
The Hormel Foundation, which is an independent trust, owns approximately 48 percent Hormel Foods’ outstanding common stock, Snee explained.
“This year, the Hormel Foundation reaffirmed its commitment to protecting our company’s long-term interest and clearly stated that they would vote against any bid to acquire our company,” he said.
