March 12, 2008

Hormel open to acquisition opportunities

Hormel Foods Corp. will expand its plant operations or go for right acquisition opportunities this year, CEO Jeffery Ettinger said.

The company will continue to focus on its line of microwave meals, which Ettinger said grew between 30 and 40 percent last year and grew 60 percent in the first quarter of 2008, which began in November.

Hormel recently announced plans to build a US$90-million facility in Dubuque, Iowa, to expand production of its microwave products.

It is also expanding in its uniquely flavored foodservice items. Its Austin Blues line includes barbecue-based products for restaurants that don't have the ability to smoke their meats. Ettinger said the line did more than US$40 million in sales last year.

In terms of international expansion, Hormel will continue to focus on Asia, especially on expanding its operations in Beijing and Shanghai.

Ettinger added that Mexico is an undeveloped market for the company's branded business, but gives good opportunity for future growth.