Hormel Foods Corporation · NYSE:HRL
Hormel Foods — Investor Day (June 2013)
13 slides from Hormel Foods's investor day presentation, Jun 25, 2013
Slide 1: Don Kremin
Don Kremin Group Vice President - Specialty Foods Group
Slide 2: Agenda
Agenda • Specialty Foods Group • SPLENDA® update and next steps • Leverage channels of distribution • Future growth 2
Slide 3: Specialty Foods Group Purpose
Specialty Foods Group Purpose Balance against protein Diversification /commodity markets Operational Leverage synergies enterprise assets 3
Slide 4: Leverage Channels of Distribution
Leverage Channels of Distribution • New product development • Transportation and logistics optimization • Supply chain and production optimization Specialty Foods Group Specialty Foods Group Strategy / Business Operations Development Diamond Century Specialty Crystal Foods Products Foodservice Retai
Slide 5: Score Card
Score Card In millions In millions Specialty Foods Financial Diversification Leverage Hormel Foods wide Assets 5
Slide 6: SPLENDA Update and Next Steps
® SPLENDA Update and Next Steps New Opportunity • Continue sales of pink and blue • Opportunity to be full line sugar substitute supplier within foodservice and retail • Exclusive contract for SPLENDA® sales • Build own brand and pursue private label and distribution extends to July 31, 2013 opportu
Slide 7: Foodservice: Operational Efficiency
Foodservice: Operational Efficiency Efficiency Gains Implemented cross- In millions synergy programs $5.0 $5.0 within Specialty $4.0 $4.3 Foods and Hormel $3.0 $2.0 $2.2 $1.0 2012 2013 2014 Implemented Est. Planned consolidated approach • Logistics to plant operations • Leverage scale of purchase ma
Slide 8: Foodservice: Innovation
Foodservice: Innovation Segments New Products Protein fortified purées Nursing homes and hospitals Protein fortified shakes High protein pudding mix K-12 Protein fortified pancake Better for you dipping sauces Premium jam and jelly cups College and universities Low sodium stuffing 8
Slide 9: Retail: Resource Utilization and Innovation
Retail: Resource Utilization and Innovation Plant Assets Retail Sales and Value Creation Research and Development Marketing Team 1. Breakfast and dessert mixes 1. Supermarkets 1. Enhance margins 2. Savory and flavoring mixes 2. Grocery 2MM 2. Control over destiny 3. Sports nutrition 3. Drug stores 3
Slide 10: Industrial: Expand Platforms
Industrial: Expand Platforms Specialty Foods Industrial Efficiency and productivity gains Contract Packaging Ingredients Expand blue chip Expand platforms customer base 10
Slide 11: Industrial: Rationale for Ingredients
Industrial: Rationale for Ingredients Ingredient Global Market Place Basis for Interest Value ~$35-45 B Annual Sales Added Projected CAGR: 3.5% • Defendable business model with solid margins Proprietary Formulae • Core competency R&D Insulation and Production with the current savory ingredients port
Slide 12: Industrial: Expand Platforms
Industrial: Expand Platforms • Specialty Foods competes in B2B commercial aspects of retail, foodservice and industrial channels • Industrial Ingredients is a profitable Food manufacturers and growing business Incremental opportunity 12
Slide 13: Specialty Foods Group: Future Growth
Specialty Foods Group: Future Growth • Exploit channel focused strategy • Future growth driven by innovation, resource utilization, increased productivity and acquisitions 13