Hormel Foods Corporation announced a new strategic operating model, aligning its businesses to be more agile, consumer and customer focused, and market driven. Effective Oct. 31, the beginning of fiscal 2023, the company is transitioning 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," said Jim Snee, chairman of the board, president and chief executive officer at Hormel Foods. "Our new operating model is a culmination of our recent strategic actions, which included numerous portfolio-building acquisitions, including the Planters snacking business, the creation of One Supply Chain, the modernization of our technology and ecommerce capabilities, and most recently, our transformational efforts at Jennie-O Turkey Store. This new alignment will empower our 20,000 global team members, with a more refined organizational structure that is accountable, nimble and focused on creating the Hormel Foods of the future."
The company's largest operating segment – Retail – will include its most iconic brands, 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. The new Retail segment will be led by Deanna Brady, who will be executive vice president of Retail.
The Foodservice operating segment will serve leading foodservice establishments, including restaurants, hotels, educational and health care institutions, convenience stores and entertainment venues. 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. This segment will be led by Mark Ourada as group vice president of Foodservice.
The International segment will continue to focus on aggressively growing its presence outside the United States. This includes 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. The company recently announced a new R&D and innovation center will be opening in China in fiscal year 2023 to serve as its food forward innovation and culinary creation hub for the Asia-Pacific region. Swen Neufeldt will continue to lead the company's international business as group vice president, president of Hormel Foods International Corporation.
Hormel Foods will begin operating under the new model Oct. 31, 2022. Earnings will be reported under this structure beginning in the first quarter of fiscal 2023. Changes to the company's operating segments have no impact on historical consolidated results of operations, financial position or cash flows. Recast financial information will be provided at a later date to aid in comparability to historical financial data.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minn., is a global branded food company with over $11 billion in annual revenue across more than 80 countries worldwide. Its brands include Planters, SKIPPY, SPAM, Hormel Natural Choice, Applegate, Justin's, WHOLLY, Hormel Black Label, Columbus, Jennie-O and more than 30 other beloved brands. The company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named on the "Global 2000 World's Best Employers" list by Forbes magazine for three years, is one of Fortune magazine's most admired companies, has appeared on the "100 Best Corporate Citizens" list by 3BL Media 13 times, and has received numerous other awards and accolades for its corporate responsibility and community service efforts. The company lives by its purpose statement — Inspired People. Inspired Food. — to bring some of the world's most trusted and iconic brands to tables across the globe.