Hormel Foods plans to reorganize, transitioning from four divisions to three to better reflect changes to its product portfolio and operations.
The current setup comprises Refrigerated Foods, Grocery, Jennie-O Turkey Store and International/Other. Starting this October, Hormel’s internal segments will consist of Retail, Foodservice, International and Brand Fuel.
Retail will include Hormel’s most familiar brands, including Skippy peanut butter and Spam processed ham. Foodservice will handle restaurant-oriented products like pizza toppings. International will concentrate on sales outside the U.S., with China, Indonesia and Brazil as particular focus areas. Brand Fuel will furnish marketing and consumer insights to the Retail segment.
The changes are scheduled to go into effect at the end of October. Financial results will be reported under the new segments starting in the first quarter of fiscal 2023.
CEO Jim Snee said the changes were necessary to handle the addition of the Planters peanut business, acquired from Kraft Heinz last year, and other modernization efforts. “Hormel is a distinctly different company than it was a decade ago – we’ve chanted the narrative in how we think about ourselves,” Snee told the Minneapolis Star Tribune. “Nothing is broken, this is just a way to make things better.”