Hormel Celebrates Growth of MegaMex Foods

US - Multinational marketer of consumer-branded food and meat products, Hormel Foods Corporation celebrated the growth of MegaMex Foods, its 50/50 joint venture with Herdez del Fuerte the company's annual shareholders' meeting in Austin, Minnesota this week.
calendar icon 3 February 2012
clock icon 4 minute read

Since its inception just two years ago, MegaMex Foods has increased sales by more than 150 per cent.

"The focus of MegaMex Foods is to bring the spirit of Mexico to every table," said James M. Splinter, group vice president, Grocery Products at Hormel Foods.

"Great brands like Herdez®, CHI-CHI'S®, La Victori®, Don Miguel®, and the new additions to MegaMex Foods, Wholly Guacamole®, Wholly Salsa® and Wholly Queso®, will help us accomplish this goal.

"We are excited about the future because our expectation for this business is that it will continue to grow at an accelerated rate exceeding that of our core Grocery Products portfolio."

MegaMex Foods was a key driver of success for Hormel Foods which experienced record success in fiscal year 2011. To highlight this achievement, offered remarks on the company's recent growth.

During 2011 financial year, Hormel Foods:

  • Experienced record dollar sales of $7.9 billion, up nine per cent from the previous year;
  • Increased net earnings per share by 15 per cent over 2010; and
  • Registered net sales increases in all five operating segments year over year:
    • Grocery Products up two per cent;
    • Refrigerated Foods up 10 per cent;
    • Jennie-O Turkey Store up 12 per cent;
    • Specialty Foods up seven per cent; and
    • All Other (International) up 26 per cent.

"In looking at the full year, we delivered significant sales growth of nine per cent, ending the year at a record $7.9 billion, with all five segments registering increases,â€Jeffery M. Ettinger, chairman of the board, president and chief executive officer at Hormel Foods said.

"We were able to accomplish this by enhancing our support of key Hormel® and Jennie-o Turkey Store® brands in fiscal 2011 with effective advertising campaigns. In addition, our rock-solid balance sheet and strong, long-term track record for both new product innovation and for making strategic acquisitions is positioning us to continue generating profitable growth."

Also during the meeting the company announced it is to phase out sow gestation stalls at its farms by 2017.

The issue was raised during the company's annual shareholders' meeting in Austin, Minnesota this week when questions over Hormel's use of gestation stalls was raised by the Humane Society of the US.

The company has facilities in three states - Arizona, Colorado and Wyoming - that use gestation stalls.

However, Mr Ettinger, told the meeting that they would be phased out by 2017, according to a report in the Austin Daily Herald.

He said they will phase out the crates in Arizona by 2013 and Colorado by 2017, both in accordance with state laws, and they have elected to phase out the crates in Wyoming by 2017 as well.

"We're comfortable with our position and having that consistent approach going forward," he said at the press conference about phasing out all gestation crates, the Daily Herald reports.

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