AUSTIN, MINN. — Hormel Foods Corp. will begin operating under a new model on Oct. 31, with three segments — Retail, Foodservice and International. The One Supply Chain team will continue to oversee Hormel’s global supply chain.
The new operating model is designed to support Hormel’s strategic priorities, which include expanding its leadership in foodservice, protecting and growing its core brands, accelerating global growth, amplifying its scale in snacking and entertaining, enhancing growth of its cultural and food-forward portfolios, and continuing to transform the company.
Retail, the company’s largest operating segment, includes consumer brands such as recently acquired Planters and Corn Nuts, as well as Spam, Skippy, Columbus, Applegate, Hormel, Natural Choice, Jennie-O, Hormel Black Label, Herdez, Wholly and Justin’s. The segment will be led by Deanna Brady, who currently oversees Hormel’s Refrigerated Foods segment.
The Retail segment will be powered by a new center of excellence called Brand Fuel, which will be a “food-forward hub” housing brand management expertise, marketing capabilities and insights-led innovation. Brand Fuel also will house Hormel’s e-commerce and digital content team.
The Foodservice operating segment, led by Mark Ourada, serves restaurants, hotels, educational and health care institutions, convenience stores and entertainment venues, tapping into Hormel’s continued growth in the foodservice channel driven by its portfolio of value-added products and market leadership in the pizza toppings and bacon categories.
The International segment, led by Swen Neufeldt, will focus on aggressive expansion outside the United States through growing global brands Spam, Skippy and others, accelerating growth and investment in China, Brazil and Indonesia, and leveraging partnerships in the Philippines, South Korea and Europe. A new research and development and innovation center will open in China in the coming fiscal year, serving as a culinary creation hub for the Asia-Pacific region.
“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 James P. 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 e-commerce 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.”
