HORMEL FOODS CORP /DE/ (HRL)

Hormel Foods Corporation, founded in 1891 in Austin, Minnesota, is a global branded food company generating over $12 billion in annual revenue across more than 80 countries. The Company manufactures and distributes branded, value-added consumer food products, having expanded its portfolio through organic growth and acquisitions, including the 2021 acquisition of the Planters snack nuts business. Hormel operates through four reportable segments: Grocery Products (shelf-stable foods and MegaMex joint venture), Refrigerated Foods (branded and unbranded pork, beef, and poultry), Jennie-O Turkey Store (turkey products), and International & Other (Hormel Foods International and royalty/joint venture arrangements); beginning fiscal 2023, the Company will transition to three new segments—Retail, Foodservice, and International—under a new strategic operating model.

Products are distributed domestically across all 50 states via direct sales teams, brokers, and distributors, and internationally through Hormel Foods International Corporation, which operates in markets including Australia, Brazil, Canada, China, England, Japan, Mexico, and South Korea, supplemented by licensing arrangements with companies such as Danish Crown UK Ltd. and CJ CheilJedang Corporation, and a 40% stake in The Purefoods-Hormel Company in the Philippines. Principal raw materials include pork, turkey, beef, chicken, and nuts, sourced through a mix of long-term contracts, spot purchases, self-raised turkey production, and international suppliers for items like cashews, with hedging strategies used to manage commodity price risk. As of October 30, 2022, the Company employed more than 20,000 people, over 90% in the U.S., with about 20% covered by collective bargaining agreements; it emphasizes employee development, diversity (workforce approximately 40% female and over 55% underrepresented minorities), safety programs, and wellness initiatives.

Hormel faces regulation across food safety, environmental, labor, and trade areas, and pursues sustainability goals under its "20 by 30 Challenge." Walmart is its largest customer, representing about 16% of fiscal 2022 gross sales, with the top five customers comprising approximately 36%. The Company competes broadly in the meat and food products industry against producers of other proteins and plant-based alternatives, relying on brand recognition, quality, and customer service. Hormel holds 41 U.S. and 7 foreign patents and owns numerous well-known trademarks, including HORMEL, SPAM, SKIPPY, JENNIE-O, PLANTERS, JUSTIN'S, APPLEGATE, and others.