Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Investor Day (June 2013)
23 slides from Hormel Foods's investor day presentation, Jun 25, 2013
Slide 1: Jim Snee
Jim Snee Group Vice President, Hormel Foods Corporation President, Hormel Foods International Corporation
Slide 2: Hormel Foods International Delivering Accelerated Growth: Revenues
Hormel Foods International Delivering Accelerated Growth Revenues Revenues 400 220 350 300 200 Millions 250 Millions 200 150 180 100 50 0 160 2008 2009 2010 2011 2012 1st Half 2012 1st Half 2013 2
Slide 3: Hormel Foods International Delivering Accelerated Growth: Segment Profit
Hormel Foods International Delivering Accelerated Growth Segment Profit Segment Profit 60 35 50 30 25 40 Millions Millions 20 30 15 20 10 10 5 0 0 2008 2009 2010 2011 2012 1st Half 2012 1st Half 2013 3
Slide 4: Hormel Foods International Sources of Accelerated Growth
Hormel Foods International Sources of Accelerated Growth SPAM® SKIPPY® Pork China brand brand 4
Slide 5: SPAM Brand
® SPAM Brand Korea volume Philippines UK Okinawa Japan Australia Canada Micronesia China Mexico Time New Markets Growth Markets Nurture Legacy 5
Slide 6: SPAM Brand
® SPAM Brand Understand Localize Products + Deliver Value + Gain Distribution + Customers and Consumers 25,000 Meaty Juicy Satisfaction 2008 2011 2012 2013 Accelerated Growth 6
Slide 7: Pork Exports Accelerated Growth
Pork Exports Understand Localize Products + Deliver Value + Gain Distribution + Customers and Consumers Accelerated Growth 7
Slide 8: 2012 Global SKIPPY Net Sales
® 2012 Global SKIPPY Net Sales Canada $21M China $29M US Exports $48M China Exports $18M $95M 8
Slide 9: SKIPPY Analysis
® SKIPPY Analysis Strengths Opportunities • Global distribution • Entry in new markets • 60 countries • Synergies with existing distributors • New distribution reach • Marketing the brand vs. trading • Brand Image-youthful energetic, • Foodservice Channel approachable • Line extensions beyond 12oz •
Slide 10: SKIPPY Strategies
® SKIPPY Strategies Distribution New Markets Existing Markets Consumers 10
Slide 11: Distribution
Distribution Innovations (3) NATURALS NEW NATURALS (1) (2) 40% of Line Export Extensions Sales BASE FLAVORS REDUCED FAT 11
Slide 12: New Markets
New Markets Sweden Israel France Saudi Arabia Latin America Indonesia 12
Slide 13: Existing Markets
Existing Markets China Canada Nut Based Spreads Nut Based Spreads Category Size 2012 2017 Category Size 2012 2017 $ Millions $114 $160 $ Millions $201 $252 Japan UK Nut Based Spreads Nut Based Spreads Category Size 2012 2017 Category Size 2012 2017 $ Millions $60 $61 $ Millions $105 $171 Source: Eur
Slide 14: China Strategic Mission
China Strategic Mission Our mission is to be the engine for HFIC’s accelerated growth target by focusing the Hormel China resources and business model against a foodservice & retail portfolio with strong operating margins. Foodservice Foodservice Focus refrigerated Expansion with Geographic retail t
Slide 15: Foodservice In China
Foodservice In China HFC China Revenue Growth Spending Growth 30% Key Accounts Distributors 25% FY 2011 74% 28% 20% FY 2012 36% 36% 15% FY 2013P 39% 29% 10% 5% CAGR 49% 31% 0% Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 "China remains the biggest growth opportunity in the resta
Slide 16: The Hormel Brand is Only Getting Stronger
® The Hormel Brand is Only Getting Stronger Beijing Shanghai Brand Brand Awareness Awareness 16
Slide 17: How SKIPPY Impacts China
® How SKIPPY Impacts China 2013 Estimated Revenue 2014 Estimated Revenue SKIPPY® Retail Foodservice Foodservice Retail 17
Slide 18: How SKIPPY Impacts China - Foodservice
® How SKIPPY Impacts China - Foodservice 29 provinces 20 provinces 156 cities 32 cities 320 distributors 107 distributors 76,000 end users 10,000 end users 18
Slide 19: How SKIPPY Impacts China – Retail
® How SKIPPY Impacts China – Retail 31 provinces 19 provinces 134 cities 34 cities 128 distributors 51 distributors 38,000 points of distribution 3,500 points of distribution (30,000 by distributor) (1,200 by distributor) 19
Slide 20: Strategic Implications for China
Strategic Implications for China Distribution Foodservice Foodservice Depth SKIPPY® Frozen & Breadth Retail Retail Ambient SPAM® SKIPPY® Scale 20
Slide 21: Strategic Implications
Strategic Implications Foodservice Retail Foodservice Foodservice QSR Distributors Frozen / Chilled Ambient Western Style Chinese Style Chinese Style Balanced Model for Growth 21
Slide 22: Hormel Foods International Delivering Accelerated Growth
Hormel Foods International Delivering Accelerated Growth Revenues Segment Profit 400 60 350 50 300 40 Millions 250 Millions 200 30 150 20 100 10 50 0 0 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 22
Slide 23: Thank you
UN UN (Thank you)