Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Investor Day (June 2017)
20 slides from Hormel Foods's investor day presentation, Jun 15, 2017
Slide 1: Jim Splinter - Hormel Foods Career History
Jim Splinter 33 Years with Hormel Foods Group Vice President, Corporate Strategy Hormel Foods Career History 2016: Group Vice President, Corporate Strategy 2010: Group Vice President, Grocery Products 2003: Vice President of Marketing for Consumer Products, Refrigerated Foods 1999: Senior Vice Presi
Slide 2: Unlocking Growth
Hormel Foods Unlocking Growth Jim Splinter Group Vice President Corporate Strategy
Slide 3: Our 5% Growth Challenge
Hormel Foods Our 5% Growth Challenge Total Foodservice Food & Beverage Total Retail Food & Beverage % “Real” Dollar Sales Change % Dollar Sales Change +3.1% 2.3% 1.7% 1.7% +1.4% 0.2% 2015 2016 2017F 2015 2016 2017F Source: Technomic Act/Forecast Jan 2017 (no liquor) Source: Total US MULO (no liquor,
Slide 4: Taco Stuffed Avocados
TACO STUFFED AVOCADOS ciHiL! MAG “N CHEESE BAKE
Slide 5: Our Strategy
Our Strategy A CLEAR STRATEGY FOR LONG-TERM GROWTH Framework • Occupy attractive growth spaces • Deliver ideas that improve the lives of consumers/patrons • Protect and grow our core businesses
Slide 6: Four Strategic Growth Areas
A CLEAR STRATEGY FOR LONG-TERM GROWTH Laser Focused on Four Strategic Growth Areas Healthy/ On-The-Go Global Multicultural Holistic
Slide 7: Unlocking Growth: Occupy Attractive Growth Spaces
A CLEAR STRATEGY FOR LONG-TERM GROWTH Unlocking Growth Occupy Attractive Growth Spaces Retail Strategic Growth Foodservice as a Expand our Opportunity Areas Growth Channel International Presence
Slide 8: Unlocking Growth: Occupy Attractive Growth Spaces
A CLEAR STRATEGY FOR LONG-TERM GROWTH Unlocking Growth Occupy Attractive Growth Spaces Protein Mexican Ground Nut Meat Salsas, Sauces Natural & Beverages, Bars, Sauces, Salsas& Turkey and Butters Snacks Condiments Organic Meats and Powders Powder and Dips IRI consulting analysis ending 11/20/16
Slide 9: 2020 Growth Pocket Analysis
A CLEAR STRATEGY FOR LONG-TERM GROWTH Unlocking Growth 2020 Growth Pocket Analysis Protein Ground Beverages, Bars, Nut Meat Salsas, Sauces & Natural & Turkey and Powders Butters Snacks Condiments Organic Meats N e e d S t a t e s Healthier Convenience & Controlled Eating Mini - Flavor Protein Lifest
Slide 10: Millennials: Key Growth Contributors
Unlocking Growth A CLEAR STRATEGY FOR LONG-TERM GROWTH Millennials: Key Growth Contributors $290B 37% 32% 26% 29% 2016 2020 2016 2020 % of CPG Dollar Volume IRI Consumer Panel Past CY 2015 All Outlets Total Store Dollar Sales
Slide 11: Millennials: Key Growth Contributors
Unlocking Growth A CLEAR STRATEGY FOR LONG-TERM GROWTH Millennials: Key Growth Contributors 43% 40% 43% 36% 36% 36% 36% 26% 36% 40% 28% 26% Protein Mexican 100 92 155 128 128 Nut Beverages, Bars, 143 121 130Meat 125 130 139 124 Index Sauces, Salsas and Powder Butters Snacks and Dips Total Edibles %
Slide 12: Unlocking Growth: Occupy Attractive Growth Spaces
A CLEAR STRATEGY FOR LONG-TERM GROWTH Unlocking Growth Occupy Attractive Growth Spaces FOODS Protein Premium Mexican Ground Fully Cooked Beverages, Bars, Nut Meat Sauces, Salsas Prepared Sliced Meats Raw Bacon Pizza Toppings Turkey Turkey Bacon and Powder Butters Snacks and Dips Proteins
Slide 13: Expand Our International Presence
A CLEAR STRATEGY FOR LONG-TERM GROWTH Unlocking Growth Expand Our International Presence 1 2 2 3 1 = Fiscal 2016 Data, 2= Hami Kharas, Brookings Institute Feb 2017 3 = WHO Report 2014
Slide 14: Improving Lives Through Innovation
Unlocking Growth A CLEAR STRATEGY FOR LONG-TERM GROWTH Improving Lives Through Innovation Eating “Mini Occasions” Healthier Lifestyles Protein Nutrition Foodservice Flavor Enhancers Controlled Indulgences
Slide 15: Market Growth
Market Growth IRI Growth Summit March 2017 15
Slide 16: Building our Digital Capabilities
Unlocking Growth A CLEAR STRATEGY FOR LONG-TERM GROWTH Building our Digital Capabilities US Online Edible Grocery Market Sales Personalized Relationships at Scale $23B $10B 2016 2021 IBIS, Mintel, Kantar Retail, Javelin Group benchmarks & analysis
Slide 17: Acquisition Opportunity Spaces
Unlocking Growth A CLEAR STRATEGY FOR LONG-TERM GROWTH Acquisition Opportunity Spaces Eating “Mini Occasions” Healthier Lifestyles Protein Nutrition Foodservice Flavor Enhancers International IRI 52W ending 4/16/17 MULO + C and Technomic data
Slide 18: Portfolio Management
Unlocking Growth A CLEAR STRATEGY FOR LONG-TERM GROWTH Portfolio Management Reinvigorate Improve marketing leverage Renovate Fix barriers to growth Accelerate Brands as growth platforms Protect & Enhance consumer relevancy Grow TM
Slide 19: 2020 Sales Goal
Unlocking Growth A CLEAR STRATEGY FOR LONG-TERM GROWTH 2020 Sales Goal 5% Organic Sales $11.6B Strategic Acquisitions Innovation Divestitures $9.5B 2016 2020 Internal data Actual Goal
Slide 20: Unlocking Growth
Hormel Foods Unlocking Growth Jim Splinter Group Vice President Corporate Strategy