Hormel Foods Launches New Strategic Operating Model
AUSTIN, Minn. — Hormel Foods Corp. is rolling out a new strategic operating model that aligns its businesses to be more agile, consumer and customer focused and market driven.
Effective Oct. 31, the company is transitioning into three operating segments: retail, foodservice and international.
"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 CEO 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," he concluded.
The One Supply Chain team will continue to oversee Hormel's global supply chain.
As part of its strategic plans to drive sustainable growth, the company will operate in three new segments:
Retail
Hormel's largest operating segment, retail will include its most iconic brands, many of which hold a No. 1 or No. 2 market share in their respective categories. The retail segment will be focused on brands such as the recently acquired Planters and Corn Nuts, as well as SPAM and Skippy.
Additionally, the retail segment will be powered by a new center of excellence called Brand Fuel, which will serve as a food-forward hub that houses brand management expertise, world-class marketing capabilities and insights-led innovation, and will further enable data-driven decisions for the enterprise. This center will also house the Digital Experience Group, the Hormel's e-commerce and digital content team that supports the company's brands and businesses in the virtual marketplace.
The new Retail segment will be led by Deanna Brady, who will be the executive vice president of Retail.
Foodservice
The Foodservice operating segment will serve leading foodservice establishments, including convenience stores, restaurants, hotels, educational and healthcare institutions and entertainment venues, and will be led by Mark Ourada, group vice president of foodservice.
This 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.
International
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. Swen Neufeldt will continue to lead the company's international business as group vice president of Hormel Foods International Corp.
Hormel's operating model will also 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
Based in Austin, Minn., Hormel Foods is a multinational manufacturer and marketer of high quality, brand name food and meat products for consumers around the globe. The company sells products under some of the world’s most iconic brand names including Hormel pepperoni, Applegate natural and organic meats, Jennie-O turkey, Skippy peanut butter, Black Label bacon, Wholly Guacamole dips, Columbus meats, Justin’s nut butters, Hormel chili, Muscle Milk sports nutrition drinks and SPAM products.