Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Investor Day (June 2015)
19 slides from Hormel Foods's investor day presentation, Jun 11, 2015
Slide 1: Specialty Foods
Specialty Foods Don Kremin Group Vice President
Slide 2: Specialty Foods Group Purpose
Specialty Foods Group Purpose Operational Growth Diversification synergies
Slide 3: Performance
Performance In millions Sales Drivers • Leverage segment assets • Splenda exit • CytoSport acquisition 2009 2010 2011 2012 2013 2014 2015 est.* *2015 sales number is estimated based on 5% organic growth plus expected addition of CytoSport 3
Slide 4: Portfolio & Vision
Portfolio & Vision Balanced Portfolio Growth Platform Legacy Portfolio Health and Nutrition 54%* Core 46%* Retail Industrial Foodservice Retail Industrial Foodservice *Projected 2015 segment profit percentage
Slide 5: Balanced Growth Strategies
Balanced Growth Strategies Health and Nutrition Core Grow Utilize Muscle Milk Franchise capacity and innovate Realize Synergies between Expand margins by CytoSport and Century Foods offering branded solutions Grow Expand Hormel Health Labs value-added ingredients
Slide 6: Core - Offer Branded Solutions
Core - Offer Branded Solutions • Kid’s Kitchen • Café Delight • Emeril • Wholesome
Slide 7: Health and Nutrition Consumer Strategy
Health and Nutrition Consumer Strategy Core strategy based on linking protein to consumer need for various levels of activity Protein Least Active Most Active Lifestyle Lifestyle Recovery Active Performance Physical performance Recovering patient, aiming to Active lifestyle, workout important aspect
Slide 8: Delivering Franchise Growth
Delivering Franchise Growth • #1 brand for Dysphagia • Expand domestic distribution • Innovate • Develop new trade channels Global Multicultural Healthy / Holistic On-the-Go
Slide 9: Why CytoSport?
BRAND Why CytoSport? • #1 brand ready-to-drink Multicultural Healthy / Holistic On-the-Go • Relationship with Century Foods Global 9
Slide 10: Channels of Trade
BRAND Channels of Trade Specialty DSD FDM* and Club 22% of sales 38% of sales 40% of sales *Food, Drug, and Mass channels
Slide 11: State of the Acquired Business
BRAND State of the Acquired Business Opportunities Challenges • Growing category • Weak state of Specialty & • Distribution voids in FDM Club channel • Synergies with Century • Lack of innovation Foods
Slide 12: 2015 Focus
BRAND 2015 Focus • Realize synergies between CytoSport and Century Foods • Launch new items for all sales channels • Complete rebranding in specialty channel • Develop sales in FDM channel
Slide 13: CytoSport and Century Foods Synergies
CytoSport and Century Foods Synergies Sales, Marketing, Plant Assets and Innovation, & Production Value Creation Financial Competency Management 1. Improved asset and capacity utilization 2. Improved customer service 3. Synergy gains
Slide 14: Innovation in All Sales Channels
Innovation in All Sales Channels FDM and Club DSD Specialty Channel
Slide 15: Rebranding in Specialty Channel
Rebranding in Specialty Channel Success with Monster Launch
Slide 16: Develop Sales in FDM and Club
Develop Sales in FDM and Club Leveraged Hormel Foods competency in FDM and Club to drive incremental sales
Slide 17: Brand Share Total
Brand Share Total Muscle Milk brand share the last 4 weeks is at 33%, with dollar sales up + 6%, and the category with growth of + 5% Dollar % Growth Dollar Share Last Last Last Last 12Wks 4Wks 12Wks 4Wks Single Serve + 6% + 3% 64% 65% Take Home + 14% + 13% 36% 35% RTD Total + 8% + 5% 54% 54% This i
Slide 18: Future Growth
Future Growth Health and Nutrition Core Grow Utilize Muscle Milk Franchise capacity and innovate Realize Synergies between Expand margins by CytoSport and Century Foods offering branded solutions Grow Expand Hormel Health Labs value-added ingredients
Slide 19: Specialty Foods
Specialty Foods Don Kremin Group Vice President