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About Rochelle Foods, LLC

The maker of such thrifty pantry staples as SPAM lunch meat and Dinty Moore stew, Hormel Foods produces a slew of refrigerated processed meats and deli items, ethnic entrees, and frozen foods, sold under the flagship Hormel brand, as well as Don Miguel and MegaMex (Mexican), and Lloyd's (barbeque). Food service offerings include Hormel Natural Choice meats, Café H, Austin Blues, and Bread Ready pre-sliced meats. Hormel is also a major US turkey and pork processor, churning out Jennie-O turkey, Cure 81 hams, and Always Tender pork. More than 40 Hormel brands are ranked #1 or #2 in their respective markets. Vast majority of its total sales were from domestic operations.


Hormel Foods operates four business segments – Refrigerates Foods; Grocery Products; Jennie-O Turkey Store; and International & Other.

The largest, Refrigerated Foods, consists of branded and unbranded pork, beef, and chicken products, and accounts for about 55% of total sales.

The Grocery Products segment generates about a quarter of revenue through the processing, marketing, and selling of shelf-stable food products, as well as private label shelf-stable products. Mexican food joint venture MegaMex contributes to the segment's results as well.

Jennie-O Turkey Store accounts for about 15% of total revenue, comprises mainly branded and unbranded turkey products. It rears around 80% of its turkey requirements itself, while the remainder comes from contracted independents.

International & Other includes Hormel Foods International, which makes, markets and sells Company products internationally. The segment accounts for about 5% of total sales.

Geographic Reach

Hormel is based in Austin, Minnesota and its products are sold across the US. While some 95% of the company's sales come from its home country, Hormel boasts operations and/or joint ventures across the globe, including in Australia, Brazil, Canada, China (the world's biggest market for pork), Japan, and the Philippines. Other major markets include Mexico, Micronesia, Singapore, and South Korea, and products are marketed in some 80 countries.

Sales and Marketing

Hormel's sales and marketing function comprises approximately 970 sales personnel, independent brokers, and distributors. Abroad, subsidiary Hormel Foods International Corporation (HFIC) does Hormel's marketing.

Wal-Mart is Hormel's largest customer, accounting for roughly 15% of Hormel's sales. The world's largest retailer purchases products from each of Hormel's four business segments.

Hormel relies heavily on a small group of customers. Its five largest customers in each segment make up the following approximate percentage of segment sales: about 45% of Grocery Products, more than one-third of Refrigerated Foods, over 50% of Jennie-O Turkey Store, and around 15% of International & Other.

Hormel's advertising expenses for fiscal years 2019, 2018, and 2017 were $131.1 million, $151.5 million, and $135.6 million, respectively.

Financial Performance

Hormel's financial performance in recent years has seen generally flat revenue growth and rising earnings. The company has been making acquisitions and targeting international expansion to compensate for its declining Jennie-O Turkey Stores (JOTS) business, which has seen sales fall in each of the last five years.

Sales drop to 1% to $9.5 billion due to the divestiture of CytoSport and decrease on grocery products.

Hormel's net income fell 3% to $978.8 millionwas due to the increase in provision for income taxes.

The company's cash position strengthened slightly in 2019, growing $214 million to $672.9 million. It generated $923 million from its operations, while its investing activities generated $220.1 million, mainly used in buying property and equipment. It used $926.2 million from its financing activities, mainly for dividend payments and payments on long-term debt.


Hormel has put in place growth strategies in recent years and is poised to reap the benefits in FY2018. It made three acquisitions in 2017 and opened a new processing plant in China. As well, it has been developing new products with an eye towards shifting its product mix to higher-value offerings. It anticipates growth in its Refrigerated Food segment as it has a broad range of brand name product lines including Hormel Firebraised meats and pizza toppings. Retail sales of Hormel Black Label convenience bacon and Columbus deli items also contributed to overall growth.

Internationally, Hormel's intent is to replicate the standing and branding it has achieved in the US. It wants to be the #1 or #2 brand across numerous product categories and to offer a mix of both shelf-stable and perishable foods. Its new Chinese plant, when at full capacity, will double the number of produced pounds of food, from 80 million to 160 million and will produce SPAM and refrigerated and frozen meat items for sale in the foodservice and retail channels. The Ceratti purchase in Brazil and Fontanini buy in Italy are both part of the firm's larger plan for geographic expansion.

Another Hormel strategy is to extend existing brands and roll out new brands. While SPAM may be its best known brand, Hormel has a diverse and growing portfolio of consumer products. The company is protecting existing markets by bumping up advertising on established brands such as Skippy peanut butter and SPAM.

The company's Precept Foods joint venture with Cargill markets case-ready fresh beef and pork under the Always Tender brand. Hormel operates another joint venture with Herdez Del Fuerte to market Mexican foods in the US. Called MegaMex Foods, it is integral to Hormel's plan to further diversify its portfolio.

Mergers and Acquisitions

In 2020, Hormel acquired Texas-based Sadler's Smokehouse, a maker of premium and authentic pit-smoked meats for retail and foodservice customers. Sadler's Smokehouse will continue operations from the Henderson, Texas facility and will report into the Refrigerated Food segment of Hormel Foods. The company expects the acquisition to be neutral to slightly negative to fiscal 2020 earnings, as the company plans to make immediate investments into the business and production facility.

Rochelle Foods, LLC

1001 S Main St
Rochelle, IL 61068-2190
Phone: 1 (815) 562-4141

Firm Stats

Employer Type: Privately Owned
Electrical Technician: Rick Klaren
Director, Internal Audit: Paul Kuehneman
Director Human Resources: Scott Morrison
Employees (This Location): 700
Employees (All Locations): 700

Major Office Locations

Rochelle, IL