Hormel Foods (HRL)

Nathan Annis Director of IR
Jim Snee Chairman President and Chief Executive Officer
Jim Sheehan SVP and Chief Financial Officer
Rupesh Parikh Oppenheimer
Ken Zaslow BMO Capital Markets
Akshay Jagdale Jefferies
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Unidentified Company Representative

Hi, please find your seats. We’d like to welcome Hormel back to CAGNY for the last presentation of the day. Please join me in thanking the company for sponsoring a tasting of new products right outside this room following this presentation. Hormel has been busy today having just reported earnings this morning and thank you very much for coming. Hormel is a 125 year old company with $9 billion of sales in branded foods and meat products. in invest a in acquisitive and food been to continues faster has growing broader into company Hormel growing channels.

Jim and today Jim have Snee, and President We CEO Sheehan, SVP CFO. Chairman, and

second While this be first presenting time presenting CEO. CAGNY. Chairman, and This his President time as is will at Snee’s Jim

Snee? kick Jim let's Now off. it

Jim Snee

Florida, and the your much home day sunny you with Well, more and for the to about thanks next pleasure our a be different key our of we Great. because truly Hormel environment to all of to Jim quarter from end are detail Sheehan I on hours Foods. thanks, Janet, first after you several get are provide pleased for on to Minnesota. share a now and sharing engine here be back to growth going six us. progress in we It’s update results, have against to initiatives

Foods testament pride lot of may forward-looking familiar those that’s expect, over would to believe of Hormel list we the a corporate ranking a $XX business; you top available that true for recently a ranked factors see you people. of take is with X that team who It cap As actual company filed not sharing of one as our our and risk detailed as may of billion. $X.X a which are website. approximate market billion XX,XXX a number in was will And we in some citizens inspired results we we on Report you as is can our primer and statements differ of Annual be be our from with

XXX years fronts. track got around been success on very and long we’ve different a have of number We now record of a for

business, is increases which able one-third XX we’ve every over opportunity years on more Foods licensing portfolio year. think We Oven double-digit increase vertically XX% of Jennie-O are Store brands of us retail, and some joined combination the years exports, about in to Food our like distinct is year very for do consumer. last last able But being of operates XX multinational, reporting putting resonate have international now Brazil. Turkey a out business remaining segment been business smallest our in our being hospitals, and years. presence international This nine growth dividend segment, deliver about And of and one-third ground our sales. a international the And business including been food represents our business Store earnings the to the last through more hotels, approximately have sell we XX Wholly our of our Refrigerated pork and and subsidiaries. Foods refrigerated fresh turkey a of Ready venture also entire Jennie-O SPAM, Service continues and integrated and our lean to about of both XXth colleges so different plates. the Grocery to think segments, turkey And largest lot ever-broadening service both I our growth. and Food iconic finally, and restaurants, but one-third And And segment continue largest the housed its space. on Service birthday our segments, branded its China about segment. and across like most grow of sales about in we our housed products brands with XX% fantastic some along celebrated core has year is of Jennie-O recent Refrigerated be Turkey platform On-trend item a sales of businesses universities. next last number the today’s in-country is those record in focused selected turkey the of XXXX, as value-added and our and food brands joint at which this sales had our in focused our and some is we strongest and is Brands to offers business with portfolio. innovation across also us has turkey iconic last which industry grocery great for branded brands strong Jennie-O XX% operate Guacamole. innovative PB Skippy a Bites the our and and talked in were our more and which is been the business. most now by Justin’s, as Skippy, on new business our entirely which like legacy partnerships business, four With a business,

business, of got our retail Products the Jennie-O the segment. side our business, is business, which of in and over Foods in very our Store Refrigerated XX% strong On brands in Grocery Turkey our we’ve

We we cover that which two grocery those XX footprint retail store any brands have XX compete categories they and are entire the or brands. one in in number of number with the

there go imperatives shopping shopping. At strong when, certainly aren’t it talked outlined the today’s brands. they consumer, across our We food about where our I about am that and evolving too pleased in places is we that our So progress since that that time. can spot Hormel Meats how a not Investor outlet are the Craft the company of is tremendous XXXX retail you portfolio, come and and while also puts where broader a have are business made consumers and Columbus and about squarely sweet to many us we report into acquisition for to meeting Day, product a

value-added Service franchises. to are Food we Fontanini in making accelerating of expenditure are the acquisition through capital support investments Wichita like Food and and retail growing Kansas our one and the business We our expanding Service

And acquisition And have facets our we our alignment to increase we and more continue we’ve more that branded and China. balance to teams will as modernizing appropriate to are Ceratti We the in into in move growth in business are make to strategies our sure we we take that away volatility increasing presence where action. chain. of our continue capital will process of And the commodity reduce evaluate finally, with portfolio. from business don’t, supply and we global Brazilian of our made sales with we value-added sales investments all the our and look

relentless us continue We develop find have accretive our to And and to good with still to have work innovation grow our drive will key to evolve. unmatched and brands, grow made we progress, continuing towards but results to strategic that allow drive to we continue ability do. acquisitions our to quest and corporate

to year that rest take Obviously, we has messages quarter and Since guidance the we first reported to growth from a away So and for XXXX. there of also quarter are you first want quarter take year what few during always today. for earnings our key us. provide we earnings, strong our seems earnings our the we increased will fiscal quarter release, this the opportunity CAGNY in fall, color about more to store of

benefit we of our clearly Meats into us to provides of to our dive key Columbus balance invest most grow our third and how company’s see beyond. deeper acquisition, growth reform our invest why this is for a and and tax Second, additional into to enhance detail as next the Craft engine. And message business approach for you provide recent and XXXX funds the our and allows

reforms. we’re to growth. the announced quarter a by strong of we results We morning this our strong XXXX tax first had quarter pleased report driven quarter impact as and of a from Grocery positive as a So Products, earnings record performance well

the offset the partially we On in Refrigerated were segment increases freight basis, Products with at is these Now first increases and by segments. reporting Store oversupply those Turkey continued a this Jennie-O impact Foods the Jennie-O our coming freight, in biggest Grocery and Turkey of Specialty significant a and Foods perishable merged time are freight situation Store. both

brands numerous First HERDEZ, Muscle quarter sales Wholly SPAM. including Guacamole, portfolio and Milk, growth across the came from

Our MegaMex drive lower expenses help and growth. joint earnings venture SG&A

those new this divisions Our into what Specialty the and Products. Foods will on like. look are Grocery Grocery team Products of two new integration the the And Products is Grocery working

MASTERPIECES reporting provide into existing utilize meals the by And like quarter, Applegate. Columbus addition is pillar portfolio team Black functional strong our merged higher the our products These grocery nutrition. saw Food will Bacon great branded growth over progress Refrigerated across and freight new were production the And Earnings divestiture X Milk like businesses evolve toppings being annualized cost. business. branded costs seen joined the and of acquisition leadership another same under simple same Hormel of business Farmer sales the Pizza Bacon decision-making will We’ve assets is its with this Muscle business brands the were pillar. by and CytoSport private-label first and and after which Label now have Foods making impacted now Our and at Service broad very the time. structure. brands retail portfolio. John, of is CytoSport

continued saw cost pressure. also expected to Turkey fiscal for which XXXX. We input Store was oversupply industry continues face Jennie-O volatility

in sales for and pressured markets Reduced We this both prices, expectations. whole and all this to and brand to continue year were lower increased breast bird lower sales. levels, were Continued by ground costs offset Jennie-O oven ready and growth turkey lean Jennie-O profits. commodity turkey harvest freight with through order promotional below invest spend front in than operators and lower strong to and planned brand customers. center last our keep advertising Turkey

negatively exports expectations. Sales strong the input increased line in the in and in for and of of top-line. is Higher China. was cost business increased business China SPAM exports and contributing International now our with Our are Production Ceratti, sales with margins. in-country running up to impacted addition

you chain. a complex but co-packer a are broken that since chain this make using do a have over over opportunity I’d want of take chain, to XX,XXX we to over reiterate to the do we announcement XX,XXX on SKUs. plants, like broad items update not supply supply we reorganized XX our also supply with network have Now the to progress I making supply

continuous we’ve over nice job up years, Now with done a our improvement bottom process. the

to However, where to appropriate, perhaps optimize rationalize. do down there we take modernize, is top work more approach simplify, a to that and need

Now in now position. progress the that about Executive has President have as Glenn the officially made Vice Leitch place we Supply work his structure. been Chain focused structure transitions a we for told We’ve good as the other on you the We on in and we month through were and place backfilling process. he of

confident efficiencies, to are capture we ability the and allocate ability continue to those efficiencies. and process, identify purposely but our retain our in to for improve As

four significant into built Our be chain. supply chain somewhat and integrated structure we supply know there and combining redundant on will efficiencies by strategic available platforms is one

to range from of the the $X.XX full we current year, increasing to $X.XX. we of $X.XX range $XXX as are So to our look a guidance to

International Food, and not Refrigerated changed. Products have Grocery for expectations Our

impact of than as expecting reform earnings. well Store, our our are continued a We is reconciliation pressure. new is slower guidance. positive increasing Turkey tax this a that Jennie-O complex to at planned The recognized as guidance freight We’ve from previous recovery

reform to approach some freight, the and invest While benefit there tax and are protect a cash and approach. the of allowed us related has defend to business grow take headwinds and Jennie-O versus

are have not investments year otherwise would making we that made. We this

making is financial now turn my are monitoring communities, We strategies. be and brands, technology. to we in discuss we’ll automation over dynamics new And key pleasure our do, to as to our to well It as investments industry Sheehan things always Jim people, as closely.

Jim Sheehan

industry, outlook. of Thank few key storage of the results into In I these year. QX market our by placements of indicators I’ll on key chart turkey our left a factors including pulp the you, and afternoon. insight The are Jim, impacting remainder shows inventories the each good placements. identifying and provide cold and conditions. will the pulp start factors

have not we see, can but are placements fluctuated, seeing sustained you As decreases. pulp

last the we continue placement capacity turkey clear that inventory Export above demand, prices. well right remain remainder the exports to storage the and favorable of demand pork domestic As the to cold market metrics balance inventories on have our and the industry, on the hog as pork and production remains between markets focus the for Domestically, expectation at continued supply. indicates, pulp year. continues At as tampered chart high levels The oppress for year. robust.

hog expected, first were we in As quarter. prices volatile the

X% short-term additional online. X% as to continued occur last year expect to XXXX. comes volatility we hog in of and expect X% supply We The increase an increased production additional

with feel storage shown the levels impacting chart, on raw of capacity eventually We to will are is us additional As provide inventory material. levels. normalized cold returning sources and the additional inventories

in volatility We levels also normalized the returning the inventories feel decrease to will markets.

Our cost. market current analysis favorable the level the company with existing harvest that under provides raw supports our conditions, material

We fundamentals. are closely watching the

with the market materials have short-term magnitude to We shows generally demand. remains the at market changes source volatility the speed demonstrates expectations the a The markets of XXXX. and on continued in aligned long-term were our of challenges the challenge. margins since changes forecasting for the flexibility conditions. volatility but of adjust managing consumer raw Key based and The belly chart quarter, the

also in sport less volatility dramatic hog, hog impacting bellies, Although the with is trim beef. company and

are timing the earnings in seeing quarterly results changes. the of driven Some market of fluctuations we the by are

our the the With trends year. of market beginning the with still in at line overall turkey, we of exception to expect be expectations

for plan of level we expectation. negatively Refrigerated higher exceeded Although much cost, the impacted , and the expenses freight our quarter Freight Jennie first increases O. especially

the one-time with rates, first benefit of the to in that quarter. effective remainder the impact an for lower tax solutions with and the on an quarter for beneficial deferred are receive working customers significant resulting our and from Hormel of liability will the mutually a We tax earnings X.X% mitigate find our are from Along flow of reform tax sustainable reduction the cash statutory both year. benefited perspective. the will rate

impact flow effective The long-term from We tax XXXX approximately between between The and rate allow our quarter. our rate is long-term million. in between communities. impact cash million in tax XX.X%. begin $XXX benefit in annually. employees XX.X% for expect $XXX in The investing XXXX will second business, reform Investments and tax will $XXX and expected will the XX.X%. and is to XX.X% return to shareholder million be enhanced provide be business The the while us

by at increase people support advertising on automation, capital communities excess additional and in option for per In and our company the next million XXXX, expect into years. value-added quarter, plant be $XX XX,XXX additional XX% of XX%. operating starting flow grants a in to last the all of first the of reform. is our increased We and cash focused invest to The quarter, lowest the increasing rates second by donations above will expenses In year. Hormel. recently We $XX increased XXXX. stock we over are we the people be employees impact by The and end allowable will to Hormel Investing enhanced activities. promotional provide hour will announced capacity. priority will tax projects community flow – advertising, cash for technologies five Beginning in strong

of As increasing our Jim has long our dividends. already history stated,

dividend, our future. the are increase by committed We membership in continuing maintaining to to Aristocrat dividends

also modernize capacity as the at to support million and products. disciplined We projects. facilities clear the expand option We optimizing the will acquisitions continue communicated to our on of make company’s utilized Previously, our in dilutions goal We XXXX repurchase $X.X the to $XXX the acquisitions through history shares growth. to market. debt and we in expenditures have additional the in largest worth innovative based we have currently offset and our capital of evaluation and to balance investments internal million make year. billion and represents $XXX stock the of balance sheet for past value-added

cost. a Supply We our The the is Deli reallocating for just integrations initiatives management. grade long-term approach of in is organization. It Products, goal on maintaining These the business resources cost have rating. key taken to synergies Grocery thoughtful strategic and Columbus, is deliver goal are throughout and to initiatives Chain all of management The growth. not while cost organize strategic progress. to Fontanini, finding to and efficiencies investment cut of focus these are the growth strategic actions The while

already was including into are have supply We selected and basing chain, departments the Zero in second of being last and synergies found the the year implemented in subsidiaries. is attain remainder sales to future. expanded benefits. the Zero synergies business track on XXXX has delivered phase expected for basing we

tools progress the and We to and processes are developing communicate in savings. capturing our and retaining validate identified

Before I’ll assure disclosing and information Snee. you. presentation the the accurate Jim to savings, as our the pass back priority Thank to is now reliable.

Jim Snee

Jim, a but great. great beneficial Thanks, Well, complex on update topics. very

space is our portfolio make poised engine created in category Meats The next the the The Deli division. focused that And product of newly areas. key fact, no is it, of this is Craft be business far only of to retail other It’s newly and the over third presentation offerings part continues of including a message of our outpacing win any other final Deli allocated is footprint the acquired afternoon not And our by rate company’s as to right growing more its Deli about and up And it’s outlet. brand. parts mistake on with this of to and in this the the Hormel be growing strong Deli and Columbus key And brands retailer’s four more total made outpacing very right to growth parts Deli. food the in of four store, growth is times. part that important at faster business. it’s of

which of and we are of you growth. is remember brands preference glass the demise Grab all glass product bit rumors perhaps remains a find two. as the will where you right, behind Go and of either already next is will to see, the recently, a sliced a array with combination this wide your first more The cheeses or or a growing presumptuous premium and Go. this meat, as segment the meats, of Deli, the segment and is fueling I sliced and pieces typically of Grab And behind about pre-packaged sizable The can this pre-packaged you, whole the is tell what

just this Next, potatoes. macaroni mashed no about is prepared longer and foods, and cheese

And looking are significant growing. retail clear they size times retailers. of is us outlets, this opportunity preferences. that or they for are signature are billion all it’s consumer Service less come and continue of are, are Whether the And freestanding their finding to but changing shrink growth As a and on-the-go segments our restaurants dealing Grocerants. this now of without $XX today’s as less in-store in wherever what Many wheelhouse they the within opportunity Food time, Combined, growing. of the including branded strong restaurants with know combined, doesn’t But in area the higher set with in finally, consideration all store labor, this for retailers offerings. and many and they business. have are challenges these food is consumers for it’s dealing quality,

our from the Our away partners. solutions-based approach takes burden retail

a and insights and right have change, products. experience. point can business They difference evolve experience retailers very shopping an authentic a products, are We keep to try the unique continues come fresh to of all in about to and landscape new traditional consumers And to And and say the while to the inspired relevant. growing where customers. this provide to continue attract discover, it’s safe and are today’s area that consumers to have

is So where said, no one not extra thin, our The millennials. Deli. Deli the not future the only where pound, of be words crafted, you sliced now This desired and is thickness. thing Simply like joined longer artisanal, clear. past Deli today pound order is paper pound, thick by of Deli your favorite a terms are quarter your should the half a crystal the of parent’s protein place Charcuterie, to like

of why sizable that like and the if high positions and and today what the Columbus none Meats growth isn’t in know Hormel that Deli recent is to Deli this of for acquisition there you a us future. and matters the now of looks how but how so Craft win appealing, So, attractive this also category is compete the you of know

Meats, video premium me I’d amazing products, this with you who share that And that short and allow as you introduce premium margins. heritage company of premium those success. growth formally familiar to this and For great like highlights to to a Columbus Craft aren’t delivers

high-quality having organization we the see high-quality capitalize of sales sold of array Deli can you have Deli, wide the Because well-positioned helps compete provide scale of to products. it meats. of marketed a expertise offerings, on meaningful strong acquisition so and many Columbus Hormel Foods Hormel Deli always newest items as package the Foods of with but solutions. direct starts a Columbus family. that like in to total and product need think Charcuterie relationships artisanal I is close had the of us to really the are win a compete And by excited those being have and gaps win. to some in has So to with that why can segments, trays a has experience, Hormel you product the representation member and and

Additionally, our any space far solutions our the cannot depth they breadth unmatched of solutions. match of in competitors or Deli and array the of outpaces this simply

Now like strong brands the expertise behind had Jennie O Deli. we’ve Di Lusso with glass and

Hormel Applegate us Jennie sausage Columbus. We our the are and and ham experts the O, addition now we natural as are of to the at now dry the organic with Turkey leading the of brand experts the opportunity offer brand The at experts addition affords well.

Grab allows innovation bring gatherings and add Columbus to the the section and Paninos while also We tray salami. Columbus items and addition pairings, of Go culinary like party authentic us fast-growing with our to

like innovation can search H solution-based leveraging very Great it together, and Food are well-positioned you this one Service. our host brands O, And we service incredibly and now in-store AUSTIN with both Hormel, foods offerings. food solutions we you Service, while prepared are and growth growth provides solutions Food bring restaurants. As the high-quality, retail to service signature recently in experience. sales how food for retailers successful solutions Columbus, And one and newly like long Cafe Food powerful of Deli selling Jennie high-quality for dream perfect are now when into our division and knowledge put offerings. role. have into area. Food game-changing in Applegate, we brands one BLUES, selling we of to all putting as all unmatched as will incredibly bringing in does high Hormel he division. we and and and Expertise imagine, highly now runway as deliver branded to innovations strategy the no a performers has signature a Fontanini reporting thought provide Last business new Deli Service our sales created role leadership, marketplace. be initiative and Baker able And Jeff, to solution-based named industry-changing brands. to consolidate of Refrigerated supporting Service deep manage Jeff Deli also of truly motivate a and this by of Deli this highly best organization a week, This Deli team will most charge Vice focused direct Group to our he leverage He Foods. led Hormel understands President

retail Now I said we start out had successfully. a with perfect large points boosts brings complement leveraged billion new Deli $X as solutions-based major business our channel. our Deli sales be before to broader deliver group direct very runway force increases team Columbus an to excellent acquiring against weaker have and Columbus almost east a in we is sales believe Columbus, presence but our our meaningful will brands. any of where Combined, much the a which a We Columbus Columbus model our long Hormel portfolio. current acquisition us migrate dramatically traditionally allow sales, can our that to current we selling scale. also us west help that be we will are to distribution gives

for full next is is Deli of poised growth, high win the trend Foods. this and engine growth and future Hormel advantage this take So on to in Hormel the

over growth are be and We be in will growth line with in with approximately and are the expectations $X Deli accretive leader margins that time. sales, our the in corporate growth goals to category positioned new aggressive billion

of brought meats Now and able our hope craft news great by the Columbus and of will out today, we some on Janet of upfront, you way are some great they members and good to Columbus and it from of some Charcuterie products served we’ve that premium the being your be the mentioned enjoy the team session.

with in recap, afternoon year quarter you our invest to your want does and Strong be next may guidance three and thank Deli additional increased questions for and Nathan first you key this Tax be take fiscal XXXX. the Jim I engine. company’s earnings business our for provide new our third, to messages funds have. will happy growth reform So any time. remaining that group to and I time and would today. for to


[Operator Instructions]

Unidentified Analyst

out? freight and could wondering that tax bit, some it color, the just that is side, and items looks might little this you Just what midpoint of the the reform if the you prior just on if with of savings, us you little down related one of then, about how it options is there touched bit versus seem new of could a could touch give that, that’s freight about a you headwinds. some but And what trajectory the discretionary think you right? play to give and a expect little tax have how thinking kind a like does offsets you in for a pricing, some on sense take range are on breaks at more flexibility maybe your some of strokes about you And you should we on maybe broad how are lift, that it rate $X.XX least how

Jim Snee

I missed sorry, I’m last the part.

Unidentified Analyst

come and ways see some handle long of some to terms that Just freight of your how are those take would it pressure, through? the what in to of

Jim Snee

Okay, great.

gap the the terms think that I So, talking perhaps of first tax in about part you are for benefit. the

described. As about we really you would and the to Store could that think be freight. the half investments other be that O about it, that Turkey to best Jennie of at probably some of way then, And headwinds half additional the allocated the say allocated we’d

and making year want clear a approach mean, it of we I think our defend that said grow think versus otherwise have would that to idea this we we this and investments I be invest approach. a some thing I it’s very but presentation, made. in not about, one in the and protect taking important we piece are

you gap. the think to should And opportunity really an giving perhaps – about how that. so, it’s probably But us do the that’s

freight of believe with the that we is this doing, number We we routes hard to we our having shipments timeline our going solutions consumer. those a that agreed another is customers, along it’s see passing that there to to conversations We I reach mutually thought right school work collaboration there have filling certainly Those are it out want can that opposed side, potentially that the way talked mean, trucks, more know says, sustainable. I co-operational we're there mean, that’s On so cost, not the have but we're all that those when about there, it’s get of are happen we customers, whether we how sustainable the that. offset can is, upon reach we going work don’t with through to to of and to for before a but now, are we place to the we other taking part conversations freight solution. can if

Unidentified Analyst

you. Thank

Jim Snee


Nathan Annis


Rupesh Parikh

my taking for Thanks question.

So, then, Jennie post segment, outlook the that year, positive this potentially thinking how guys the guess, of trends year do to you were was the Jennie on for you for O when to wondering expect if look, about and balance return I O the I you within segment?

Jim Snee

Do when become have breakdown, the half when Nathan? breakdown it year, for be positive positive. of you the it'd back the will more The

Nathan Annis

I on will follow-up that.

Jim Snee

has on, but we I been for slower Yes, obviously than Nathan us, think will follow-up this expected. recovery

of whole some great volatility charts we a Jim’s it’s for through seeing are how what really now continued in really of so got this have driver market bird year key of we’ve value-added identifying We pieces in placements. business aggressive and been to been piece. forecasting that’s were a we job expected even pulp the approach balance and and the work and pretty whole the bird still we taken did the the moderation below in

we cold get the going We and those also to are us haven’t variables than key elevated that then really the out declines really sooner still and storage are seen faster. sustained said two supply the

Nathan Annis


Ken Zaslow

questions. Two

when your growth two turkey to you With investments, the in the you second savings seeing the And cost return from would and question of savings, prevent from? frame magnitude recovery questions. that will where in of terms Those you my are achieving it algorithm? magnitude, we XXXX? can order of what in is, My are

Jim Snee

like Jennie of O expect Turkey described is for would as the for with done really you mean, we but we in engine Food early about growth Service, I about Columbus. with We XXXX, the so, we it’s the way the we’ve think Yes, next think, addition Store. Fontanini we the with to thinking as obviously, the Foods what – but process, today Refrigerated growth portfolio it are I recovery

Our right growth about so to Muscle feel core continue quite what’s saw improved International good that well. Products, pockets solid addition along. of performance from Ceratti. business Milk. happening move We Grocery now, portfolio, are those China, doing We right in of going the to is rock is legacy frankly And

number achievable doing algorithm described And believe perspective, what a mean, we of lot so, and we’ve that very a mean, still been I as management. what I from that a is cost cost growth is strategic Jim

Jim Sheehan

the I the integration look think the to of at things chain. is supply one of

running about think chain. you one into supply supply If four go separate that will chains

logistics, so from everything become provides about for and That with that of and the think the probably you If manufacturing, to of us savings. products. warehousing more available largest broad manufacturing opportunity plants line amount

savings the along smaller up way. We the will pick

savings great into you them three provide big will the separately bring being Deli in net or going are some of you chain, integration and do see are see that to we take groups to the by savings different and We Again, think synergies. trying centralized office and I things four that I supply as back you the very think benefits. put one. into as

Ken Zaslow

about $XXX we are what frame to Are million million, million, number? or able be $XXX Would talking $XXX the we about? talking

Jim Sheehan

taken number everybody they lot on have ideas save everybody’s dollars, working savings couple savings that me, very honestly, is a the now everybody about are that big because going issue they’ll has their thinks money. originally billion We would to they're if of probably is, gave own and right I

down So going are and those. are on really drilling through we we

you saying bottom-line? going packaging your example that say, the and to have we coming to back in Our in have you’ve held are purchasing come we’ve can view packaging, – what’s on now cost we but cost. get up, X% other have gone So, packaging saved those and

The other big issue much thing is for how is, we a retain us.

the but really retain to the come less delivered that – can number, shareholders. You it, a with the you bottom-line, not it’s not benefiting up savings

up come to with hard working number. are we So a

We closer. getting much are

Nathan Annis


Akshay Jagdale


I don’t this to So perspective because about, ask your – year just really somewhat Ken what unusual tax your out this positive might you earnings to growth the thirty here, perspective long-terms, going a is I right. am you I looking as be was be going impact, right, is said, take if know, one a the question, but just – over thirty for which to the is to of be of talking from wanted follow-up down,

you like So, but transitory you great long-term, of turkey how your brand long-term. right, move investment, and of versus do that on delineate the of building might terms it strength portfolio between and commodity pork sort a it’s dealing – of be and sort you sort a strategic brands with other moves that on are making are seems in capabilities, of

are confidence have to confidence why sort the do good returns have question, do why you of long-term is you when investments going you So year”? that these “transition in on really a get you

Jim Snee

is because mean, that I category. probably to are specifically us, of that just that’s and know we in risk don’t turkey, space doing we to want company the mean, we brand promoting the if be the think, a important we that, to I about the advertising you want And I are if commoditized only – company. not the run really becoming talk Yes, turkey and supporting we

communicating important, it to going that and did of front. switch battle, again year, than or so, And the for got terms believe are we be incredibly we the benefit two away the consumers from ago. the make made to as of wise off decisions products so one We value-added funds. out the ran in move it’s reallocating to back campaign. We years and brand ago, a some of don’t be there years we in more the year. is Several heat into Last we think we different

going this of investment number brands. we year. lot our about able growth sure got and when capitalize on, mentality to So center one front we’ve that are talking been and we are all builders. or great a we and make that brands is are identified that mean, of XX have We’ve that to number have we we two these I across start brand pockets of it because is And

to great long-term. support continue the need that and are to to over innovators we be able We so,

Unidentified Company Representative

to just be think all Please please for the as going And of join Q&A the personal rest take and Hormel will it’s do the your the with if as breakout. anything. thanking the of you me Columbus a again that, in leave And I we’ll in it tasting. belongings move office reminder, lost to be