December 2, 2014

Hormel, Cargill dissolve joint-venture firm Precept Foods

Hormel Foods Corp. has announced that Precept Foods, formed 12 years ago in partnership with Cargill Meat Solutions, has been dissolved.

From 2002 until its recent dissolution, Precept Foods had been marketing fresh meat products under the Hormel Always Tender brand.

Jeffrey Ettinger, president and CEO of Hormel Foods, said that they dissolved the Precept Foods partnership "effective at the end of fiscal 2014…by mutual decision with Cargill Meat Solutions."

"Sales of $115 million were associated with this business, but we do not anticipate a material impact to segment profit as a result of this change," Ettinger said.

Ettinger explained in a statement that "our relationship has evolved to a co-packing arrangement instead of a joint venture."

"It was mutually agreed upon by both companies that this new arrangement would be best for the long term. Cargill continues to supply case-ready products to Hormel Foods and its customers through this new arrangement," he said.

No statement from Wichita, Kansas-based Cargill Meat Solutions was available.