| Market Capitalization (Millions $) |
11,870 |
| Shares
Outstanding (Millions) |
551 |
| Employees |
20,000 |
| Revenues (TTM) (Millions $) |
12,147 |
| Net Income (TTM) (Millions $) |
342 |
| Cash Flow (TTM) (Millions $) |
228 |
| Capital Exp. (TTM) (Millions $) |
311 |
Business Description
Hormel Foods Corporation is a Delaware corporation that was established in 1891 by George A. Hormel in Austin, Minnesota. Originally named George A. Hormel & Company, the organization has since evolved into Hormel Foods Corporation, a name adopted on January 31, 1995. The company primarily operates in the production and marketing of a diverse range of meat and food products, both within the United States and internationally. While pork and turkey have historically been the primary raw materials for Hormels products, the company has shifted its focus over the years to emphasize branded, value-added consumer items, moving away from the commodity-oriented fresh meat sector. This strategy has allowed Hormel to expand its product portfolio through organic growth, innovative new product development, and strategic acquisitions.
In recent operational developments, Hormel Foods Corporation acquired Boca Grande Foods, Inc. in June 2008. Boca Grande specializes in the manufacturing, selling, and distribution of liquid portion products and operates a facility located in Duluth, Georgia.
Globally, Hormel markets its products through Hormel Foods International Corporation (HFIC), which serves as a wholly owned subsidiary. HFIC maintains a presence in various international markets via joint ventures and strategic placements in countries such as Australia, Canada, China, Japan, and the Philippines. The company also holds minority positions in food companies in Mexico (50% stake in Hormel Alimentos) and the Philippines (40% stake in Purefoods-Hormel), as well as a 49% stake in a hog production and processing operation in Vietnam (San Miguel Purefoods (Vietnam) Co. Ltd.).
Hormel Foods operates its business through five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store (JOTS), Specialty Foods, and All Other. The company has strategically shifted its focus towards processed branded products to mitigate seasonal fluctuations commonly associated with commodity products, with pork remaining a core raw material. Despite the industrys trend toward large, vertically integrated operations and supply contracts, Hormels diverse and expanding line of processed items has helped reduce the impact of raw material supply and price volatility on its overall performance.
The competitive landscape for Hormel Foods is intense, as it faces competition from both national and regional manufacturers of pork and turkey products, as well as from producers of other protein sources such as beef, chicken, and fish. Major competitors in the Refrigerated Foods segment include Tyson Foods, Smithfield Foods, and Sara Lee Corporation; in the Grocery Products segment, key rivals include ConAgra Foods, Pinnacle Foods, and Campbell Soup Company; while the Jennie-O Turkey Store segment competes with Cargill, Inc. and Butterball, LLC.
Company Address: 1 Hormel Place Austin 55912 MN
Company Phone Number: 437-5611 Stock Exchange / Ticker: NYSE HRL
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60.21 %