Hormel Foods Corporation announced a new strategic operating model on Aug. 9 that aligns its businesses to be more agile, consumer and customer focused, and market driven, the company said in a release.
Starting Oct. 31, the beginning of fiscal 2023, the company will transition to three operating segments – Retail, Foodservice and International. The One Supply Chain team will continue to oversee the company’s global supply chain.
“Hormel Foods is a distinctly different company than it was a decade ago, with a food forward, growth-oriented portfolio of leading brands and products that are aligned with our customer and consumer needs,” Jim Snee, chairman of the board, president and chief executive officer at Hormel Foods, said in a release.
Hormel’s new operating model is a culmination of recent strategic actions, Snee said, which included numerous portfolio-building acquisitions, including the Planters® snacking business, the creation of One Supply Chain, the modernization of its technology and ecommerce capabilities, and most recently, transformational efforts at Jennie-O Turkey Store.
The new operating model will support the company’s six strategic priorities:
- Expand leadership in foodservice
- Protect and grow its core brands
- Aggressively develop its global presence
- Amplify scale in snacking and entertaining
- Enhance growth of its ethnic and food forward portfolios
- Continue to transform the company
The company’s largest operating segment – Retail – will include its most iconic brands, many that hold a No. 1 or No. 2 market share in their respective categories. The retail segment will be focused on Hormel Foods powerhouse consumer brands in the retail marketplace. These brands include the recently acquired Planters and Corn Nuts, in addition to SPAM, SKIPPY, Columbus, Applegate, Hormel Natural Choice, Jennie-O, Hormel Black Label, Herdez, WHOLLY and Justin’s. Retail will be led by Deanna Brady, who will be executive vice president of Retail. Brady currently oversees the company’s Refrigerated Foods segment.
The Retail segment will be powered by a new center of excellence called Brand Fuel. Brand Fuel will serve as a food forward hub, housing brand management expertise, world-class marketing capabilities and insights-led innovation, and will further enable data-driven decisions for the enterprise, Hormel said in a release.
“Over the last several years, the company has focused on the importance of leveraging its innovation, consumer insights and technology to enable connections with consumers where and how they shop. Brand Fuel will also house the Digital Experience Group, the company’s ecommerce and digital content team that supports the company’s brands and businesses in the virtual marketplace,” the company said.
The Foodservice segment will serve leading foodservice establishments, including restaurants, hotels, educational and health care institutions, convenience stores and entertainment venues. This segment will be led by Mark Ourada as group vice president of Foodservice.
“The company’s sales into the foodservice channel have continued to experience growth due to its portfolio of branded, value-added products and market leadership positions in the pizza toppings and bacon categories. The new Foodservice operating segment will combine the company’s domestic foodservice businesses and will remain focused on partnering with customers to deliver culinary solutions for today’s dynamic environment,” Hormel said in a release.
The International segment will continue to focus on aggressively growing its presence beyond the U.S. and will include growing global brands such as SPAM and SKIPPY, accelerating growth and investment in China, Brazil and Indonesia, and further leveraging its partnerships in the Philippines, South Korea and Europe. Swen Neufeldt will continue to lead the company’s international business as group vice president, president of Hormel Foods International Corporation.
A new R&D and innovation center will open in China in fiscal year 2023 to serve as its food forward innovation and culinary creation hub for the Asia-Pacific region.
Read More:
Why Did Retail Pork Prices Climb 27.3% in 2.5 Years?
Why One Commercial Pork Operation Decided to Get in the Show Ring
Genvax Technologies Secures $6.5 Million to Advance Novel Vaccine Platform
Don’t Miss the Fun at the 2022 Iowa State Fair Bacon Buddies Pig Show
