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Hormel Foods (HRL) on Track With Product Launches to Aid Growth
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Focus on innovations and effective product launches have been helping Hormel Foods Corporation (HRL - Free Report) boost assortment strength and meet growing snack demand. Progressing along these lines, the company introduced the Hormel pretzel bites and cheese tray — a new addition to the Hormel Gatherings line.
This first of its kind product is priced at $6.99-$7.99 and is available for purchase in the deli department across some retailers starting this month. The Hormel pretzel bites and cheese tray consists of four ounces of soft pretzel bites as well as cheddar cheese sauce with a sea salt packet. This easy-to-make product is apt for up to four people.
Well, the newly-launched item is an ideal anytime snack for game nights, in-home movie nights and virtual meetings. Moreover, Pretzels are one of the promising snacks in the marketplace. Notably, soft pretzel bites are increasing on restaurant menus in the United States. The introduction of Hormel pretzel bites and cheese tray brings is likely to bring restaurant trends inside consumers’ homes. Also, the launch is appropriate in an environment of increasing home-based working and schooling trend as well as smaller get-togethers amid the coronavirus outbreak.
Boosting Assortments: A Key Driver
Hormel Foods’ focus on innovation is yielding results. During its fourth-quarter fiscal 2020 earnings call, management highlighted that the company achieved its goal of generating 15% of sales from new products that were formed in the last five years. Even amid the coronavirus outbreak, Hormel Foods’ developed, launched and boosted sales from new items. Products such as Hormel Cup N' Crisp pepperoni, SKIPPY peanut butter squeeze packs, Herdez Salsa Cremosas and Happy Little Plants among others have been contributing to the upside
We note that Hormel Foods is expanding plant-based protein food offerings. In December 2020, it launched plant-based protein puffs under the Happy Little Plants brand line-up. With rising health consciousness, plant-based food alternatives are gaining prominence. This provides opportunities for companies like Hormel Foods to diversify and grow.
Further, the company is undertaking strategic advertisement investments to support growth of its brands. Also, the company’s well-chalked acquisitions are boosting its product portfolio strength. In this regard, the buyouts of Sadler's Smokehouse, Columbus, Fontanini and Ceratti are worth mentioning.
Wrapping Up
All said, this Zacks Rank #4 (Sell) company has been seeing declines in its foodservice business amid the pandemic. This is caused by reduced demand from various foodservice venues in the wake of COVID-19 induced social distancing. The company is also facing escalated costs associated with COVID-19. These include costs related to lower production volumes, employee bonuses and expenses to ensure better safety measures in production units. Shares of Hormel Foods have declined 10.7% in the past six months against the industry’s growth of 5.9%.
Nonetheless, we believe that the company’s brand strength along with focus on enhancing capacity is likely to keep it well placed.
Darling Ingredients (DAR - Free Report) , a Zacks Rank #2 stock, has a trailing four-quarter earnings surprise of 26.3%, on average.
Medifast, Inc. (MED - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 20.2%, on average.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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Hormel Foods (HRL) on Track With Product Launches to Aid Growth
Focus on innovations and effective product launches have been helping Hormel Foods Corporation (HRL - Free Report) boost assortment strength and meet growing snack demand. Progressing along these lines, the company introduced the Hormel pretzel bites and cheese tray — a new addition to the Hormel Gatherings line.
This first of its kind product is priced at $6.99-$7.99 and is available for purchase in the deli department across some retailers starting this month. The Hormel pretzel bites and cheese tray consists of four ounces of soft pretzel bites as well as cheddar cheese sauce with a sea salt packet. This easy-to-make product is apt for up to four people.
Well, the newly-launched item is an ideal anytime snack for game nights, in-home movie nights and virtual meetings. Moreover, Pretzels are one of the promising snacks in the marketplace. Notably, soft pretzel bites are increasing on restaurant menus in the United States. The introduction of Hormel pretzel bites and cheese tray brings is likely to bring restaurant trends inside consumers’ homes. Also, the launch is appropriate in an environment of increasing home-based working and schooling trend as well as smaller get-togethers amid the coronavirus outbreak.
Boosting Assortments: A Key Driver
Hormel Foods’ focus on innovation is yielding results. During its fourth-quarter fiscal 2020 earnings call, management highlighted that the company achieved its goal of generating 15% of sales from new products that were formed in the last five years. Even amid the coronavirus outbreak, Hormel Foods’ developed, launched and boosted sales from new items. Products such as Hormel Cup N' Crisp pepperoni, SKIPPY peanut butter squeeze packs, Herdez Salsa Cremosas and Happy Little Plants among others have been contributing to the upside
We note that Hormel Foods is expanding plant-based protein food offerings. In December 2020, it launched plant-based protein puffs under the Happy Little Plants brand line-up. With rising health consciousness, plant-based food alternatives are gaining prominence. This provides opportunities for companies like Hormel Foods to diversify and grow.
Further, the company is undertaking strategic advertisement investments to support growth of its brands. Also, the company’s well-chalked acquisitions are boosting its product portfolio strength. In this regard, the buyouts of Sadler's Smokehouse, Columbus, Fontanini and Ceratti are worth mentioning.
Wrapping Up
All said, this Zacks Rank #4 (Sell) company has been seeing declines in its foodservice business amid the pandemic. This is caused by reduced demand from various foodservice venues in the wake of COVID-19 induced social distancing. The company is also facing escalated costs associated with COVID-19. These include costs related to lower production volumes, employee bonuses and expenses to ensure better safety measures in production units. Shares of Hormel Foods have declined 10.7% in the past six months against the industry’s growth of 5.9%.
Nonetheless, we believe that the company’s brand strength along with focus on enhancing capacity is likely to keep it well placed.
3 Key Food Picks
The Hain Celestial (HAIN - Free Report) , currently carrying a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 26.7%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Darling Ingredients (DAR - Free Report) , a Zacks Rank #2 stock, has a trailing four-quarter earnings surprise of 26.3%, on average.
Medifast, Inc. (MED - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 20.2%, on average.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>