Businessweek

Hormel Foods Corporation engages in the production and marketing of meat and food products in the United States and internationally. Products The company’s products primarily consist of meat and other food products. The meat products are sold fresh, frozen, cured, smoked, cooked, and canned. Perishable meat includes fresh meats, refrigerated meal solutions, sausages, hams, wieners, and bacon (excluding Jennie-O Turkey Store (JOTS) products). The poultry category comprises primarily JOTS products. Shelf-stable includes canned luncheon meats, shelf-stable microwaveable meals, stews, chilies, hash, meat spreads, flour and corn tortillas, salsas, tortilla chips, and other items that do not require refrigeration. The other category primarily consists of nutritional food products and supplements, sugar and sugar substitutes, creamers, salt and pepper products, sauces and salad dressings, dessert and drink mixes, and industrial gelatin products. Domestically, the company sells its products in all 50 states. Its products are sold through its sales personnel. It also utilizes independent brokers and distributors. Internationally, the company markets its products through Hormel Foods International Corporation (HFIC), a wholly owned subsidiary. HFIC operates in the international marketplace through joint ventures and placement of personnel in strategic foreign locations, such as Australia, Canada, China, Japan, and the Philippines. HFIC also has a global presence with minority positions in food companies in Mexico (Hormel Alimentos, 50% holding) and the Philippines (Purefoods-Hormel, 40% holding), and in a hog production and processing operation in Vietnam (San Miguel Purefoods (Vietnam) Co. Ltd., 49% holding). The company, through HFIC, has licensed companies to manufacture various company products internationally on a royalty basis, with the primary licensees being Tulip International of Denmark and CJ CheilJedang Corporation of South Korea. Customers The company’s major customer includes Wal-Mart Stores, Inc. Patents and Trademarks The company holds 44 U.S.-issued and 6 foreign patents. Research and Development For the period ended October 28, 2012, the company's expenditures for research and development were approximately $29.8 million. Competition The company's major competitors include Tyson Foods; Smithfield Foods; ConAgra Foods; General Mills; Campbell Soup Co.; Cargill, Inc.; and Butterball, LLC. History The company was founded by George A. Hormel in 1891 in Austin, Minnesota, as George A. Hormel & Company and changed its name to Hormel Foods Corporation in 1995.