Hormel Foods saw a significant boost in sales of its Applegate products during the COVID-19 pandemic, and the company intends to invest further in the natural and organic protein subsidiary.
Speaking during the Hormel Foods quarterly earnings call on August 25, Hormel Foods Chairman, President and CEO Jim Snee pointed out that the company’s refrigerated foods volume increased 8% year-over-year, while the sales increased 5%. In addition, organic volume increased 7% and organic sales increased 2%. Applegate products were a large contributor to that growth, Snee said.
“Consumers are discovering the Applegate brand at a rapid rate as families are looking for options to feed their kids while at home during the pandemic,” said Snee.
“The growth we have seen from Applegate in the last few months is staggering and we are investing in the business in order to maintain momentum. The Applegate team delivered these impressive results even as they battled disruptions in their third-party logistics system due to COVID-19, and I’ve had to work creatively to find additional capacity in their supply chain.”
Hormel Foods acquired Applegate Farms, headquartered in Bridgewater, New Jersey, in July 2015 for a price of about $775 million. Applegate Farms was founded in 1987.
Applegate products span multiple categories, including chicken nuggets, hot dogs, burgers, bacon, deli meats, breakfast sausages, frozen products and cheese. Animals raised for Applegate products are raised without antibiotics and are fed a vegetarian or pasture-centered diet.
Snee spoke of the company’s plans to grow Applegate while also announcing the company’s financial results of the third quarter of fiscal year 2020. During the quarter, the company recorded net earnings of $203 million, a 2% increase when compared to the third quarter of fiscal year 2019.
Hormel Foods is also the parent company of Jennie-O Turkey Store, Spam, Black Label, Skippy and Columbus.
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