Hormel Foods Corp (HRL)

Hormel Foods engages in the manufacture and marketing of various meat and food products in the United States and internationally. It offers perishable meat products like fresh meat, sausages; shelf-stable products such as canned luncheon meats as well as food products and supplements. The company generates revenues from five segments namely Refrigerated products (49%), Jennie-O-Turkey Store (20%), Grocery (16%), Specialty foods (11%) and All other (4%).

Going forward refrigerated products is expected to drive company’s topline as it is among the six fastest convenience-oriented food items. Also, as the consumers are switching more towards sugar-substitutes, it entails a good fortune for Hormel Foods as the company generates a bulk of revenues from Specialty foods. Encashing on the opportunities its fourth quarter performance has also been good with revenue improvements across all their segments. To keep the momentum going, its acquisition of Provena and Saags should save costs ahead and boost the refrigerated foods segment, which forms about 49% of the sales mix.

Looking ahead, company plans to focus its marketing efforts on Hormel brand that contributes over 16% to the topline. As Hormel has high brand loyalty, upcoming unified packaging system would attract more sales as the entire grocery and refrigerated product line will be sold under a unique Hormel brand mark. Joint Venture with San Miguel could mark the entry for Hormel foods in the hog and meat business in Vietnam, which can aid its financial stability

One of the prime concerns is rising grain costs. But as the management initiates to pass on the increased cost to the consumers, the profitability is least to be affected. In the view of all these aspects, Hormel Foods looks like a delicious recipe for the investors.

Founded in 1881 by George A. Hormel & Company and changed its name to Hormel Company in 1995. I love their products. I still eat "SPAM" sandwiches often. As long as this world keeps eating to live, then Hormel will be around to make sure were fed. So invest in a company that feeds us daily.

RECENT ACQUISITIONS WILL HELP GAIN MARKET SHARE IN VALUE ADDED MEAT PRODUCTS

Hormel is a cash cow and as long as people continue to buy food products, this stock should weather the storm well. They have a wide array of products with most being heat and serve. Families will fore go the restaurant for equal quality at home with heat and serve products that a company like Hormel offers.

Food producers will survive the downturn, no matter how bad it gets. People have to eat. Plus, the fall in energy prices will work its way into feed and hog prices, boosting profits for Hormel. Where they took a hit when oil prices went up, they get it back when prices go down.

1. smart acquisitions
2. excellent track record of growing national brands

An analyst says Hormel might be affected negatively by the frugality of the marketplace, but if you look at the variety of brands and products Hormel owns, it appears well-positioned, short- and long-term, to weather most any storm. It might not provide a skyrocketing growth scenario, but often slow and steady wins the race.

Solid Company, Well run, High quality products

Makes products that will always be needed,

10000

Everyone buys these products.

it makes foods affordable in the recession

Parabolic SAR Buy Signal

Dear Wild Oats shopping former house flippers:
There is a product you've probably made fun of but never tasted called SPAM. You'll be eating it soon. That or IAMS. Enjoy the new America.

innovative product developement;profit sharing w/ employees;steady management.

good company its makes spam

Because of the weakening economy they're selling as much Spam as they can crank out. This is where all the money went when IHOP and Hardee's got too expensive for people living at or below the poverty line.

http://www.nytimes.com/2008/11/15/business/15spam.html

great stock

Solid products but with low visibility. It won't keep pace with more exciting food companies.