With household names such as Dinty Moore, Spam and Little Sizzlers, Hormel Foods, a multinational manufacturer of consumer-branded meat and food products, has a strong reputation with consumers. Its products also are distributed to foodservice and industrial customers.
Financial results were strong in the fiscal 2005-second quarter. "Our turkey business was the clear stand-out in the quarter, said Joel W. Johnson, CEO said in a May 28, 2005, press release. "A combination of continued value-added sales growth, higher turkey meat markets, lower grain markets and efficiencies in our production facilities all contributed. We expect this same operating environment for the rest of the year."
Johnson discussed other market segments as well. "The Grocery Products and Refrigerated Foods segment margins were pressured because of higher pork and beef raw material costs compared to last year. Nonetheless, we increased advertising and promotional spending during the quarter to strengthen our position in the market going forward," he said.
With regard to recent acquisitions Johnson said, "We are making good progress integrating the three acquisitions that were announced during the second quarter, Mexican Accent, Mark-Lynn Foods and Lloyd's Barbeque Co. These businesses fit our strategies to grow our ethnic and foodservice businesses, and bring value-added products to the meat case. The contributions from these businesses are expected to accelerate in the second half of the year."
IW 50 Best Manufacturing Company
