US meat company Hormel Foods plans to introduce a new strategic operating model, in a move to align its businesses to be more consumer-focused and market-driven.
The company plans to transition to three operating segments – retail, foodservice and international. Hormel Foods’ ‘One Supply Chain’ team will continue to oversee its global supply chain.
The largest operating segment – retail – will include brands such as Planters, Corn Nuts, Spam and Applegate. It will be supported by a new “food-forward hub” called Brand Fuel, which will oversee brand management, marketing and insights-led innovation.
The second operating segment will serve foodservice establishments, while the international unit will focus on the continued expansion of Hormel’s presence outside the US. This includes growing global brands such as Spam and Skippy, and accelerating growth and investments in China, Brazil and Indonesia.
Jim Snee, chairman, president and CEO at Hormel Foods, said: “Our new operating model is a culmination of our recent strategic actions, which included numerous portfolio-building acquisitions, including the Planters snacking business, the creation of ‘One Supply Chain,’ the modernisation of our technology and ecommerce capabilities, and most recently, our transformational efforts at Jennie-O Turkey Store”.
Snee continued: “This new alignment will empower our 20,000 global team members, with a more refined organisational structure that is accountable, nimble and focused on creating the Hormel Foods of the future”.
Hormel Foods will begin operating under the new model on 31 October this year.
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