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Product Launches Keep Hormel Foods (HRL) Poised for Growth
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Prudent innovations are helping Hormel Foods Corporation (HRL - Free Report) meet consumers’ changing tastes and preference and thereby maintain strong footing in the food space. Moreover, the company is striving to boost assortments to cater to consumer’s enhanced at-home dining practices, amid the coronavirus pandemic. Apart from these, the company’s focus on strategic acquisitions and efforts to enhance capacity are noteworthy.
Boosting Assortments: Key Growth Catalyst
Hormel Foods’ efforts to develop and launch new products are helping it boost sales. During fiscal fourth-quarter 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. In this context, brands such as Hormel Cup N' Crisp pepperoni, SKIPPY peanut butter squeeze packs, Herdez Salsa Cremosas as well as Happy Little Plants among others are contributing to the upside. Industry experts believe that food companies have been witnessing rising demand for several packaged food items at retail outlets, as consumers continue adhering to stay-at-home and dine-at-home practices.
We note that Hormel Foods is expanding plant-based protein food offerings. Recently, 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.
Capacity-Expansion Efforts
Hormel Foods is on track with strategic investments for boosting capacity. Last week, the company announced the opening of a new manufacturing plant — Papillion Foods — situated in Papillion, NE. The new 535,000-square feet facility will manufacture salami and dry sausage items under the Columbus Craft Meats and Hormel brands. In earlier efforts, the company carried out the Burke pizza toppings plant expansion. Moreover, its facility expansion in Nevada and Iowa will provide additional capacity for pizza toppings. Also, Hormel Foods plans to open its new dry sausage manufacturing unit in Omaha, NE during the first half of 2021. Management also highlighted that it is focusing on expanding the capacity of its pepperoni business.
Wrapping Up
We note that Hormel Foods’ foodservices channel has continued to remain weak amid the pandemic, as food-away-from home trends remain soft. Amid such a scenario the company’s focus on boosting retail offerings through new product launches and capacity expansion are worth applauding. Moreover, such measures have been helping to boost the company’s international business as well as aiding growth across certain retail and deli brands. Markedly, shares of this Zacks Rank #3 (Hold) company have gained 4.9% in a year against the industry’s decline of 11.8%.
Sysco Corporation (SYY - Free Report) , also with a Zacks Rank of 2, has a long-term earnings growth rate of 11%.
B&G Foods, Inc. (BGS - Free Report) has a Zacks Rank #2 and a trailing four-quarter earnings surprise of 9.3%, on average.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
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Product Launches Keep Hormel Foods (HRL) Poised for Growth
Prudent innovations are helping Hormel Foods Corporation (HRL - Free Report) meet consumers’ changing tastes and preference and thereby maintain strong footing in the food space. Moreover, the company is striving to boost assortments to cater to consumer’s enhanced at-home dining practices, amid the coronavirus pandemic. Apart from these, the company’s focus on strategic acquisitions and efforts to enhance capacity are noteworthy.
Boosting Assortments: Key Growth Catalyst
Hormel Foods’ efforts to develop and launch new products are helping it boost sales. During fiscal fourth-quarter 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. In this context, brands such as Hormel Cup N' Crisp pepperoni, SKIPPY peanut butter squeeze packs, Herdez Salsa Cremosas as well as Happy Little Plants among others are contributing to the upside. Industry experts believe that food companies have been witnessing rising demand for several packaged food items at retail outlets, as consumers continue adhering to stay-at-home and dine-at-home practices.
We note that Hormel Foods is expanding plant-based protein food offerings. Recently, 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.
Capacity-Expansion Efforts
Hormel Foods is on track with strategic investments for boosting capacity. Last week, the company announced the opening of a new manufacturing plant — Papillion Foods — situated in Papillion, NE. The new 535,000-square feet facility will manufacture salami and dry sausage items under the Columbus Craft Meats and Hormel brands. In earlier efforts, the company carried out the Burke pizza toppings plant expansion. Moreover, its facility expansion in Nevada and Iowa will provide additional capacity for pizza toppings. Also, Hormel Foods plans to open its new dry sausage manufacturing unit in Omaha, NE during the first half of 2021. Management also highlighted that it is focusing on expanding the capacity of its pepperoni business.
Wrapping Up
We note that Hormel Foods’ foodservices channel has continued to remain weak amid the pandemic, as food-away-from home trends remain soft. Amid such a scenario the company’s focus on boosting retail offerings through new product launches and capacity expansion are worth applauding. Moreover, such measures have been helping to boost the company’s international business as well as aiding growth across certain retail and deli brands. Markedly, shares of this Zacks Rank #3 (Hold) company have gained 4.9% in a year against the industry’s decline of 11.8%.
Check These Solid Consumer Staples Stocks
The Hain Celestial Group, Inc. (HAIN - Free Report) , carrying a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 24.6%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sysco Corporation (SYY - Free Report) , also with a Zacks Rank of 2, has a long-term earnings growth rate of 11%.
B&G Foods, Inc. (BGS - Free Report) has a Zacks Rank #2 and a trailing four-quarter earnings surprise of 9.3%, on average.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>