In 1891, Mr. George A. Hormel founded today’s Hormel Foods Corporation as Geo. A. Hormel & Co., in Austin, Minnesota. The Company changed its name to Hormel Foods Corporation in January of 1995. Hormel Foods has its corporate headquarters in Austin, Minnesota. The Company has innovated and expanded through the years.
Last year, Hormel acquired Applegate Farms, LLC, owner of the Applegate® brand. This brand is #1 in the natural and organic value-added prepared meats category. This year, Hormel Foods acquired Justin’s, LLC, owner of the Justin’s® brand and an innovator in nut butter-based snacking.
The Company is a transnational manufacturer and marketer of consumer-branded food and meat products. It was named one of “The 100 Best Corporate Citizens” by Corporate Responsibility Magazine for the eighth year consecutively. Hormel Foods has wide-ranging expertise in pork and turkey processing and marketing. It brings branded, value-added products to the worldwide market.
Its brands include Applegate®; Hormel®; Jennie-O Turkey® products; Justin’s®; Muscle Milk® products; SKIPPY®; the SPAM® family of products; and Wholly Guacamole® dips, and many others. Hormel Foods operates over 40 locations across the U.S.
The Company has five business divisions:
- Grocery Products
- Refrigerated Foods
- Jennie-O Turkey Store
- Specialty Foods
- International & Other
For Q3 2016, Hormel’s Refrigerated Foods, Jennie-O Turkey Store, and International & Other had first-rate results. Refrigerated Foods Q3 operating profit grew 24%. This division’s sales rose 9% and its volume increased 3%.
The Company’s retail division at Jennie-O Turkey experienced increases. Also, International sales and operating profits grew 5%. Hormel Foods said that robust exports of fresh pork, SKIPPY peanut butter, and SPAM luncheon meats all contributed to the growth in sales and earnings. Moreover, Hormel’s China business had strong earnings growth.
Furthermore, for Q3, the Company had record results of $0.36 per share. This represents an increase of 33% from 2015. Its sales for the quarter were $2.3 billion, an increase of 5%. Hormel’s volume increased 1% for the most recent quarter.
Hormel Foods is engaging in process innovation. The five pillars of this initiative are Cost Controls; Yield Improvements; Administrative Cost Management, Capacity Optimization, and Raw Material Utilization. The Company’s balanced operating model, under the umbrella of its five divisions includes:
- Packaged Foods
- Nuts, Avocados, Tomatoes
- Pork and Turkey
- A Financially Conservative approach
- An Innovative Culture
Hormel’s Refrigerated Foods growth in retail and foodservice is being propelled by Hormel ® Natural Choice® and Hormel ® Bacon 1™ fully cooked bacon brands. Its Grocery Products growth is being boosted by Skippy®, Justin’s®, and Wholly Guacamole® brands. In addition, its International growth is being led by the SPAM® and Skippy® brands.
Its Muscle Milk has the #1 market share in Ready-to-Drink Protein Beverages. It has the #2 market share in Protein Powders. The Company’s nut butter market share is 21.1%. Its Justin’s® and SKIPPY® brands contribute to this market share, which has grown 3.7% since 2013.
In September 2016, Hormel Foods announced its quarterly dividend on its common stock, authorized by its Board of Directors, at 14.5¢ a share. The Company’s November 15, 2016 payment was the 353rd consecutive quarterly dividend paid. Since becoming a public company in 1928, Hormel Foods has paid a regular quarterly dividend without pause.