000627 Hormel Planning Push Into Branded BeefJune 14, 2000Minneapolis, MN - Meat processor Hormel Foods Corp., pleased with the successful build-up of its branded fresh pork product line, now plans a move into the branded beef category, the company's chief financial officer said. Austin, Minn.-based Hormel, whose best-known shelf-stable brands include SPAM luncheon meat, Hormel chili and Dinty Moore stew, has seen sales of so-called “value- added” pork products expand to more than 40% of its total fresh pork volume from just 5% in 1996, CFO Michael McCoy told an analysts conference here. The company is aiming for valued-added products to reach 50%-60% of all fresh pork sales, he said. Value-added meat products command higher margins than standard cuts. Sales of Hormel's Always Tender Flavored marinated pork items were up 18% in first-half 2000 in terms of tonnage, while the Always Tender Boneless pork line saw sales tonnage expand 45%. Hormel's Jennie-O line is the No. 1 U.S. turkey brand. The company plans to expand the line with the introduction of turkey burgers, bacon, franks and corn dogs as well as rotisserie turkey in the deli section of grocery stores, McCoy said. “What's next? Obviously we're moving into beef,” he said. Two flavors of Always Tender marinated beef, peppercorn and barbecue, have gotten a “phenomenal” response in five test markets, he said.
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