The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

Hormel Foods has entered into a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations (LSI).

The transaction is expected to close by the end of Hormel’s second quarter of fiscal 2026, subject to customary closing conditions. Financial terms were not disclosed.

The divestiture aligns with Hormel’s stated strategy to prioritise sustainable, profitable growth by expanding its value-added portfolio while reducing exposure to commodity-driven segments.

“Our strategy for sustainable, profitable growth centres on expanding our value-added protein portfolio to meet evolving consumer needs, while reducing our exposure to more volatile, commodity-driven businesses,” said Jeff Ettinger, interim CEO of Hormel Foods.

“We are confident that this portion of our legacy turkey business will be in good hands under LSI's ownership, given their deep experience and expertise in this area.”

John Ghingo, president of Hormel Foods, characterised the move as “an important next step in our evolution,” adding that a more focused turkey portfolio will enable the company to further strengthen the value-added aspects of its Jennie-O business.

Under the agreement, LSI will acquire both the Melrose whole bird production facility and the Swanville feed mill in Minnesota, as well as the associated transportation assets.

LSI will also assume supply contracts with third-party turkey growers dedicated to the whole-bird operation. In addition, the company will provide co-manufacturing services to Hormel through the end of fiscal 2026 to ensure uninterrupted customer fulfilment during the transition period.

Hormel emphasised that the broader array of Jennie-O branded products, as well as ownership of the Jennie-O brand name, are not part of the transaction.

“This agreement is a continuation of a 75-year relationship with Jennie-O,” said Richard Huisinga, CEO of LSI. “We are excited to combine the country’s newest, state-of-the-art hen plant, the Minnesota hen-grower families and our recent first-of-its-kind turkey hatchery.”

Hormel expects the sale to have a minimal impact on its adjusted fiscal 2026 financial results. Additional details are expected during the company’s first-quarter earnings call scheduled for 26 February 2026.