Boosted by strong pork exports sales of its Spam and Jennie-O turkey products, Hormel Foods Corp. of Austin, Minn., reported fiscal third quarter earnings of $98.5 million, up 15 percent from net earnings of $85.4 million a year earlier.
“We’re seeing strong export sales of pork products to Mexico, Canada and Asia,” said Hormel chief executive officer Jeff Ettinger.
Ettinger said margins in finished pork products such as bacon, sausage and hams, has narrowed as pork prices have risen. He said consumer demand “has been off just a little” this summer as prices for pork products have risen.
Hormel has 1,400 workers in Iowa at plants or offices in Algona, Dubuque, Knoxville, Nevada and Osceola.
Ettinger said sales of Hormel’s longstanding staple Spam have been strong, which he attributed more strength in the convenience lunch meats segment than any particular consumer buying trend due to the slack economy.
Hormel doesn’t break out numbers for specific products but Ettinger said demand for bacon has remained strong despite high prices for pork bellies.
“We had a great quarter on bacon,” Ettinger said. “It remains popular.”
Hormel has expanded its Mexican food offerings with a joint venture with MegaMex Foods of Mexico, which will enable Hormel to offer more salsa, guacamole and burrito lines.
“Mexican food is absolutely in the sweet spot of food sales,” Ettinger said. “This is true all over the country, not just in the Southwest. “Demographic changes have played a role. But Americans love Mexican food.”
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