|Traded as||NYSE: HRL|
S&P 500 Component
|Founded||1891(as George A. Hormel & Company)|
|Founder||George A. Hormel|
Number of locations
|40 Manufacturing & Distribution Facilities|
|James Snee (Chairman, President, CEO)|
|Products||Deli meat, ethnic foods, pantry foods, Spam|
|US$ 459 million (2018)|
|US$ 4.661 billion (2018)|
|Total assets||US$ 8.142 billion (2018)|
Number of employees
Jennie-O turkey store
Hormel Foods Corporation is an American food products company founded 1891 in Austin, Minnesota, by George A. Hormel as George A. Hormel & Company. Originally focusing on the packaging and selling of ham, Spam, sausage and other pork, chicken, beef and lamb products to consumers; by the 1980s, Hormel began offering a wider range of packaged and refrigerated food brands. The company changed its name to Hormel Foods in 1993. Hormel serves 80 countries with brands such as Applegate, Columbus Craft Meats, Dinty Moore, Jennie-O and Skippy.
The company was founded as George A. Hormel & Company in Austin by George A. Hormel in 1891. It changed its name to Hormel Foods in 1993.
George A. Hormel (born 1860 in Buffalo, New York) worked in a Chicago slaughterhouse before becoming a traveling wool and hide buyer. His travels took him to Austin and he decided to settle there, borrow $500, and open a meat business. Hormel handled the production side of the business and his partner, Albert Friedrich, handled the retail side. Their partnership dissolved in 1891 as Hormel started his own meat packing operation in northeast Austin in a creamery building on the Cedar River.
To make ends meet in those early days, Hormel continued to trade in hides, eggs, wool, and poultry. The name :68 In the first decade of the 20th century distribution centers were opened in St. Paul, Minneapolis, Duluth, San Antonio, Dallas, Chicago, Atlanta, and Birmingham.was first used in 1903.
In 1915 Hormel began selling dry sausages under the names of Cedar Cervelat, Holsteiner and Noxall Salami.:79 Hormel products began appearing in national magazines such as Good Housekeeping as early as 1916.
In 1921, when George's son Jay Hormel returned from service in WWI, he uncovered that assistant controller Cy Thomson had embezzled $1,187,000 from the company over the previous ten years. The embezzlement scandal provided George Hormel with additional incentive to fortify his company. He did so by arranging for more reliable capital management, by dismissing unproductive employees, and by continuing to develop new products,:90–103 reportedly with the mantra “Originate, don't imitate." In 1926, the company introduced Hormel Flavor-Sealed Ham, America's first canned ham, and added a canned chicken product line in 1928. Throughout the 1930s, Hormel ads were featured on the radio program The George Burns and Gracie Allen Show.[page needed]
Hormel Chili and Spam were introduced in 1936 and 1937 respectively. In 1938, Jay C. Hormel introduced the "Joint Savings Plan" which allowed employees to share in the proceeds of the company.
In 1933, workers, led by itinerant butcher Frank Ellis, formed the Independent Union of All Workers and conducted one of the nation's first successful sit-down strikes; the union would later join the Congress of Industrial Organizations (CIO, later AFL-CIO).
By 1942, George and Jay established The Hormel Foundation to act as trustees of the family trusts. The Foundation funded the Hormel Institute at the University of Minnesota, initially started with a study of the food value of soybeans. The Institute's scope later grew towards studying nutrition, animal diseases and food technology. Hormel's production increased to aid in World War II and 65% of its products were purchased by the U.S. government by 1945.:77–78
Little Sizzlers sausages were introduced in 1961 and Cure 81 hams were introduced in 1963.
Not-So-Sloppy-Joe Sloppy Joe sauce made its debut in 1985. In 1986, Hormel Foods acquired Jennie-O Foods and also began an exclusive licensing arrangement to produce Chi-Chi's brand products. The following year, Hormel Foods introduced the Top Shelf line of microwavable non-frozen products. The company added to their poultry offerings by purchasing Chicken by George, created by former Miss America Phyllis George, in 1988. That same year, Hormel Foods also introduced microwave bacon. In 1984 Hormel introduced the Frank 'n Stuff brand of stuffed hot dogs.
In August 1985, Hormel workers went on strike at the Hormel headquarters in Austin, Minnesota. In the early 1980s, recession impacted several meatpacking companies, decreasing demand and increasing competition which led smaller and less-efficient companies to go out of business. In an effort to keep plants from closing, many instituted wage cuts. Wilson Food Company declared bankruptcy in 1983, allowing them to cut wages from $10.69 to $6.50 and significantly reduce benefits. Hormel Foods had avoided such drastic action, but by 1985, pressure to stay competitive remained. Workers had already labored under a wage freeze and dangerous working conditions, leading to many cases of repetitive strain injury. When management demanded a 23% wage cut from the workers they decided to begin the strike. It became one of the longest strikes of the 1980s. The local chapter of the United Food and Commercial Workers Union, Local P-9, led the strike, but was not supported by their parent union. A commemorative mural painted by Mike Alewitz and P-9 workers during the strike was destroyed by the UFCW months after the strike ended. The strike gained national attention and led to a widely publicized boycott of Hormel products. The strike ended in June 1986, after lasting 10 months.
According to Triple Pundit, Hormel Foods began CSR reporting in 2006. The company has been included in Corporate Responsibility magazine's list of the "100 best corporate citizens" for 10 consecutive years.
In 2008 an article in the New York Times, "SPAM Turns Serious and Hormel Turns Out More," detailed an overwhelming spike in the demand for SPAM, perhaps due to the flagging economy. In 2009 Hormel and Herdez del Fuerte created the joint venture MegaMex Foods to market and distribute Mexican food in the United States. Brands included in the venture include Herdez, La Victoria, Chi Chi's, El Torito, Embasa, Wholly Guacamole, Del Fuerte, Dona Maria, Bufalo, and Don Miguel.
In September 2008, animal rights organization PETA released a video recorded over the course of 3 months showing workers at a pig factory farm in Iowa abusing pigs. The factory farm was owned by Natural Pork Production II LLP of Iowa until August 18, 2008, at which point ownership had transferred to MowMar LLP. Hormel spokeswoman Julie Henderson Craven, who responded to the PETA video, called the videotaped abuses "completely unacceptable." In their 2007 Corporate Responsibility Report, Hormel Foods stated that all suppliers are expected to comply with several welfare programs to ensure that the hogs purchased are treated humanely. Because of the investigation, several employees of the farm were fired and six individuals faced charges due to the abuse.
In 2011, Hormel Foods announced a 2 for 1 stock split. In 2013, Hormel Foods purchased Skippy—the best-selling brand of peanut butter in China and the second-best-selling brand in the world—from Unilever for $700 million; the sale included Skippy's USA and China factories.
In May 2015, Hormel revealed it would acquire meat processing firm Applegate Farms for around $775 million, expanding its range of meat products.
In 2015, the Hormel Health Labs division of Hormel Foods launched its Hormel Vital Cuisine line of packaged ready to eat meals, nutrition shakes and whey protein powders geared towards cancer patients and made available for home delivery. The line was developed in concert with three parties, as "Hormel brought food formulation, packaging and shelf stability knowledge, (chef de cuisine) Ron DeSantis brought taste and texture expertise, and the Cancer Nutrition Consortium offered the nutritional framework."
In 2015, SPAMMY became available for purchase under Title I for U.S. Department of Agriculture (USDA) feeding programs and Title II for U.S. Agency for International Development (USAID) programs under the name fortified poultry-based spread (FPBS). Four years earlier, the company had made an initial three-year commitment to deliver 1 million cans of this product to in-need families in Guatemala.
Also in 2015, after an undercover investigation by a group known as Compassion Over Killing at an Austin, Minnesota processing plant, Hormel Foods announced it was "bringing humane handling officers to a Quality Pork Processors Incorporated facility to ensure compliance with its own animal welfare standards." It has also told QPP to provide extra training, enhance compliance oversight and increase third-party auditing. According to Reuters, "in one scene of the video, pigs covered in feces or pus-filled abscesses are sent down the plant’s conveyor belt. At one point, a knife is used to cut open abscesses on dead pigs."
In October 2017, Hormel announced it would acquire deli meat company Columbus Manufacturing for $850 million.
In 2017, Mercy For Animals released undercover video footage of pigs being abused at The Maschhoffs LLC., a Hormel pork supplier in Hinton, Oklahoma, with piglets having their testicles ripped out and tails cut off without any anesthetic, piglets left to suffer from untreated illness or injuries, and mother pigs crammed into gestation crates unable to move. In response, Hormel temporarily suspended its buying from the supplier.
According to the Military Times, the company has been listed in the Best for Vets Employers Top 100 consecutively since 2013.
|George A. Hormel||1891–1926|
|Jay C. Hormel||1926–1954|
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Cash on hand increased to $459 million from $444 million at the beginning of the year.
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