Jennie-O Turkey Store saw net sales of $4.4 billion million in the third quarter of fiscal year 2021, an increase of 22% from year-ago levels of $3.9 billion.
Segment profits decreased 17% for the quarter, due to the impact of high feed costs and increased freight expenses. Volume sales, however, were up 9%. Executives for Hormel Foods, Jennie-O Turkey Store’s parent company, said that volume and net sales increased due to improved foodservice, whole bird and commodity shipments.
Sales of Jennie-O lean ground turkey were up following pricing actions implemented in prior quarters, with sales numbers elevated above pre-pandemic levels.
“Our ability to deliver consistent quarter-after-quarter top-line growth during this very dynamic time along with 25% percent sales growth over pre-pandemic levels is directly linked to the tremendous progress we have made in expanding our portfolio to reach consumers when and where they want to eat,” Jim Snee, Hormel Foods president, chairman and CEO, said in a statement.
“Our investments in retail, deli and e-commerce helped carry us through the initial phases of the pandemic last year as consumers shifted to more at-home eating occasions. Today, our leadership positions in foodservice and snacking have fueled an acceleration in growth as consumers pivot to spending more time in restaurants, traveling, and hosting gatherings with family and friends. This balance across consumer eating occasions is just one of the many things that make our company uncommon.”
“We saw significant inflationary pressure in almost all areas of our business, including raw materials, packaging, freight, labor and many other inputs during the quarter,” Snee said.
“We have implemented pricing actions across virtually every brand, which has been our main lever to offset these inflationary pressures. In addition, our experienced management team is taking numerous other strategic actions to offset cost increases, including optimizing promotional activity, improving product mix and rationalizing less efficient products in our portfolio.”
“We are managing through industrywide operational challenges, including labor availability, upstream and downstream supply chain disruptions, and highly volatile and inflationary input costs,” Snee said. “I am extremely proud of the way our team is navigating through these complexities while never losing sight of the company’s long-term strategy for growth.”
Jennie-O Turkey Store is the second largest turkey company in the U.S., processing 1,220 million pounds in 2020, according to the 2021 WATT PoultryUSA Top Companies survey. The Willmar, Minnesota-based company, a subsidiary of Hormel Foods, offers more than 1,500 high-quality fresh, frozen, refrigerated and deli turkey products throughout the U.S. and 27 other countries worldwide.
