Hormel to make big strategic move
Fortune 500 global branded food company, Hormel Foods, has announced a new strategic operating model, which will see the company transition to three operating segments.
Hormel Foods Corporation has announced a strategic operating model to help drive sustainable growth.
From 31 October 2022, the company will transition to three operating segments – retail, foodservice and international, in a move that should see if become more agile and consumer and customer focused.
The One Supply Team will continue to oversee Hormel’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.
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.
“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 modernisation of our technology and ecommerce capabilities, and most recently, our transformational efforts at Jennie-O Turkey Store,” added Snee.
“This new alignment will empower our 20,000 global team members, with a more refined organisational structure that is accountable, nimble and focused on creating the Hormel Foods of the future.”
Hormel’s largest operating segment – retail – will include its most iconic brands such as Planters®, Natural Choice® and Corn Nuts®, among others.
The division of the business will be powered by a new centre of excellence: Brand Fuel. Hormel has been focused on gathering insight around where and how consumers shop and this new centre aims to further enhance its data-driven decisions.
The foodservice segment will serve leading foodservice establishments, including restaurants, hotels, educational and health care institutions, convenience stores, and entertainment venues.
Hormel’s sales into this channel have continued to see growth as a result of 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 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 VP of Foodservice.
Finally, the international segment will focus on growing the organisation’s presence outside of the US. This includes growing global brands like 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 centre will be opening in China in 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 VP, President of Hormel Foods International Corporation.