HormelChili posts

Feed

Beyond Spam: Hormel wants to go upscale, but can it ever shake 'King of Cheap' image?

spam standMaybe the first indication should have been when Whole Foods Market, Inc. (NASDAQ:WFMI) declined to carry Hormel Foods Corporation (NYSE:HRL)'s fresh meats products: the King of Processed Foods might have an image problem when it started taking preservatives out of its foods.

Spam® is such an icon of preserved food that it has its entire own sub-culture, with everything from spamku to Spam cookbooks. Google's Gmail serves up Spam recipes instead of ads when you click on the spam (email) folder. Hormel's blue collar customer base adores Spam and the company's other ingredient-packed products, from chili to "deli" luncheon meats. But in fact, "shelf stable" meats have declined from nearly 20% of the company's sales in 2003 to 16.3% in the year ending October 30, 2005. Now making up the majority, 54%, of the company's sales are perishable meats -- although these include everything from the higher-quality, less-processed varieties the company wishes to become known for to the old standbys, from Hormel pepperoni to Little Sizzlers sausages to Jennie-O hot dogs.

A story in the Wall Street Journal [subscription required] this morning highlights Hormel's desires to become a healthier company, which have included innovations in preservation (High Pressure Pastuerization, develped by Washington's Avure Technologies, Inc.) and a raft of new product introductions like the Natural Choice deli meats -- the ones Whole Foods wouldn't stock. The question: if Whole Foods won't take the company seriously as a provider of natural meats, will anyone else? And will the company's loyal customers stand for it?

Continue reading Beyond Spam: Hormel wants to go upscale, but can it ever shake 'King of Cheap' image?

Symbol Lookup
IndexesChangePrice
DJIA-74.9212,454.83
NASDAQ-1.852,837.53
S&P 500-2.861,317.82

Last updated: May 26, 2012: 11:59 PM

Hot Stocks

General Electric

19.20-0.05(-0.26)

Alcoa

8.630.00(0.00)

Apple Inc

562.29-3.03(-0.54)

Google Inc 'A'

591.53-12.13(-2.01)

Bank of America

7.15+0.01(+0.14)

Wal-Mart Stores

65.31+0.24(+0.37)

Exxon Mobil Corp

82.08-0.53(-0.64)

Ford

10.60+0.01(+0.09)

Citigroup

26.47-0.19(-0.71)

IBM

194.30-1.79(-0.91)

Yahoo

15.36+0.01(+0.07)

Starbucks

54.56-0.20(-0.37)

Microsoft

29.06-0.01(-0.03)

Home Depot

49.44-0.27(-0.54)

DailyFinance Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

Page Loaded in 1338091157209 ms.