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Hormel Foods Corporation
Hormel Foods International
Richard A. Bross
Group Vice President/ President Hormel Foods International
Hormel Foods Corporation
Continuously Searching for Incremental Growth and Value
Finding Growth and Value in Interesting Places
Hormel Foods Corporation
Consolidated VolumeIncluding Volume From Licensees
1999 2000 2001 2002 2003 2004 2005*
CAGR = 12%
Hormel Foods Corporation
Consolidated Gross MarginsIncluding Royalties From Licensees
1999 2000 2001 2002 2003 2004 2005
CAGR = 9%
Hormel Foods Corporation
Build Two Important Brands#1 - SPAM®
Exports Plus EU and Korea Sales
2001 2002 2003 2004 2005
VolumeRevenue
CAGR # = 4%CAGR $ = 10%
Hormel Foods Corporation
Build Two Important Brands#2 - STAGG®
2001 2002 2003 2004 2005
VolumeRevenue
STAGG® Exports with EU Sales
CAGR # = 7%CAGR $ = 14%
Hormel Foods Corporation
Oct Nov Dec Jan Feb Mar Apr May
+3%Category+48%STAGG®
(000 KG’s)Growth
2004 - 2005
Kg
(000
)Diligently Measure Brand Investment
Australia TV Campaign
+2%
ShareIncrease
+153,000
Increased Household Penetration
Hormel Foods Corporation
Build Brands Through Advertising
STAGG® Australia TV
SPAM® UK TV
SPAM® Korea TV
Hormel Foods Corporation
SALES POUNDS (000)SALES US $ (000)
1998 1999 2000 2001 2002 2003 2004 2005 1998 1999 2000 2001 2002 2003 2004 2005
CAGR = 21% CAGR = 20%
Hormel Foods Corporation
SALES POUNDS (000)SALES US $ (000)
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
CAGR = 32% CAGR = 27%
Hormel Foods Corporation
Corned Beef
Luncheon Meats
Other Canned Other Refrigerated
Hotdogs
Refrigerated Meats = 79%Canned Meats = 21%
59%
5%6%
10%
20%
(LBS.)CAGR (1998-2004) = 10%
CAGR (1998-2004) = 19.3%
Hormel Foods Corporation
275,000 SQUARE FOOT FACILITY350,000 LBS. PER DAY HOT DOG PRODUCTION CAPACITY
(200,000 LBS. MARIKINA PLANT HOT DOG CAPACITY)100,000 LBS. HAM, BACON, & COLD CUT CAPACITYPLANT GRAND OPENING NOVEMBER 5, 2004
CAVITE PLANT
Hormel Foods Corporation
Hot Dog Stuffing
Hot Dog Batching SystemHot Dog Stuffing and Emulsion Storage and Pumping
Hormel Foods Corporation
Retail Total28%
Export Sales13%
Offal2%Fresh Pork
13%
Foodservice44%
(+18%)
(+166%)
(+16%)(-1%)
(+27%)
Total ChinaValue Share & CAGR by Segment
2001-2005
All SegmentsCAGR = +23%
Hormel Foods Corporation
Wal Mart Grand Opening - Shanghai
The first Wal Mart store in Shanghai opened on Thursday –July 28
Strong Hormel Foods China presence
Hormel Foods Corporation
Joe Hatfield Senior Vice President,Wal MartWal Mart Grand Opening - Shanghai
Hormel Foods Corporation
Designated Meat Productsof the
Training Bureau of China State Sports
In April 2005, Hormel Foods was chosen as exclusive supplier of meat products to the Training Bureau of State Sports
All Chinese Olympic athletes will be enjoying HORMEL® meat products through the 2008 Beijing Olympics
The press conference announcing this registered 38 stories, including TV coverage, plus much exposure on the internet
Hormel Foods Corporation
Sample of Press Coverage
China Daily Newspaper, April 19, 2005:
Exclusive meats for China athletes
Hormel Foods Corporation China, a sino-American joint venture, has signed a four-year agreement with the Training Bureau of China General Administration for Sports, to deliver meat products for the nation’s athletes…
…“We are glad to use meats from a world-famous company, which specializes in producing meats with high quality and complete nutrition. A healthy and strong body is of great significance for our athletes if they want to make greater contributions in the 2008 Olympics,” said Liu Wenxiong, a top official from the Bureau. China won an unprecedented 32 golds, 17 silvers, and 14 bronzes at last year’s Athens Olympics and hopes to do even better three years later in Beijing.
Hormel Foods Corporation
HORMEL® – Energy to Fuel China’s Olympic Athletes
Free-standing coupon insert in Betty’s Kitchenmagazine
Coupons untried before
Shanghai HualianSupermarkets
– Largest China food retailer
Hormel Foods Corporation
HORMEL Brand Builders
HORMEL brand persons
Young, energetic, college student or graduate, modern appearance, athletic
Walk to consumers and invite them to try our products
More intense training
Very strict message to deliver
Miked for volume
Hormel Foods Corporation
Key StrategyBuild Our Branded
Processed Meat Business
BeginMass Media Advertising
inShanghai
in2006
Shanghai
Hormel Foods Corporation
HORMEL branded value-added fresh meat in supermarkets
HORMEL branded fresh meat shops
Control from parent stock to the consumer
Fresh Pork control points
Feed Mills
Genetics-Pork flavor-Health status-Carcass quality
Feed Supply-Nutrition-Steroids and Hormones free
Pig raising barns-Management-Drug application
Slaughtering-Product hygiene-Food safety-Carcass chilling
Delivery- Cold chain
Retail counter-Maintaining the cold chain
- Freshness
Key StrategyBuild a Branded Fresh Meat Business
2002 2003 2004 2005
Number of Branded Retail Outlets
Hormel Foods Corporation
Key StrategyContinue to Grow Foodservice
Innovation of products and customer service
Continue to be a major supplier to YUM!
2002 2003 2004 2005
Total Revenue USDFoodservice
CAGR = +27%
Hormel Foods Corporation
Key StrategyContinue to Grow Foodservice
Co-branding commencing in SUBWAY stores
Entry into STARBUCKS– Sliced meats and hot
dogs in Beijing– Sliced meats in
Shanghai
Hormel Foods Corporation
2002 2003 2004 2005 June YTD
Begin with industrial salesfor further processingAdd more value-addedproductsSell HORMEL brandedproducts in restaurants andC-storesCreate a branded business inJapanese supermarkets
– In discussions withWal Mart
Hired Japan Country Manager
Key StrategyProfitably Grow Japanese Exports
KG’s(000)
CAGR = +166%Japan Exports