Living Out the Principles of Our Way

The principles of Our Way underscore integrity in everything we do at Hormel Foods. In the big and the small, our work is rooted in these principles. The following examples tell a piece of the story about initiatives and teams that are truly living out our principles.

Living Our Principles: People

CARE

Jennie-O Turkey Store recognizes that sometimes employees encounter unforeseen crisis situations that create financial hardships. Through establishing the Crisis Assistance Relief Effort (CARE), employees can apply for financial assistance during emergency situations, such as a fire, flood or hospitalization of a loved one away from home. Since the program’s inception in July 2006, the CARE fund has disbursed more than $97,000 in emergency funds.

Best of the Best

Best of the Best winners in 2007 were recognized for their projects focused on continuous improvement.

The Best of the Best competition helps Hormel Foods drive continuous improvement initiatives throughout the company. The contest recognizes our employees who work to improve processes within the company, which results in improved products and services for customers and consumers.

The competition was created to provide the focal point for application of our continuous improvement process (CIP) principles to the business, engage and motivate all employees, help teams of workgroups align goals with company goals, focus on customer satisfaction and recognize employees for their hard work.

The company-wide Best of the Best honor has been awarded since 2000. Applications are received from departments throughout the company, which are then reviewed by a cross-functional team of judges to select an annual champion. Judges evaluate the communication and participation of team members and assess the significance of the level of improvement documented and application of CIP principles. Below is a list of the final five projects from fiscal years 2007 and 2008.

2007 Best of the Best final 5:

• Hormel Foods Plant in Austin, MN — Sanitation Department
• Hormel Foods Corporate Office in Austin, MN — Accounts Payable Department
• Hormel Foods Plant in Fremont, NE — Pork Fabrication Line
• Jennie-O Turkey Store Plant in Faribault, MN — Breast Trim Line
• Jennie-O Turkey Store in Montevideo, MN — Slicing Line

2008 Best of the Best final 5:

• Hormel Foods Plant in Austin, MN — Pulled Pork Line
• Hormel Foods Plant in Austin, MN — Dry Sausage Retail Pepperoni Line
• Hormel Foods Corporate Office in Austin, MN — Consumer Product Sales Department
• Lloyd’s Barbeque Company in St. Paul, MN — Barbeque Line
• Hormel Foods Plant in Osceola, IA Plant — Party Tray Packaging Line

Living Our Principles: Process

LEED Plant

In 2008, Hormel Foods broke ground on a new food processing plant in Dubuque, IA, that is designed to meet Leadership in Energy and Environmental Design certification requirements.

In July 2008, we broke ground on a new food processing facility in Dubuque, IA, that will add capacity to produce Hormel^® Compleats^® microwave meals and other grocery products. The plant is designed to incorporate substantial energy and water savings systems. Once construction is finished, we expect to meet Leadership in Energy and Environmental Design (LEED) certification requirements when the facility is completed. LEED is a rating system developed by the U.S. Green Building Council to promote the design and construction of high-performance green facilities.

Hormel^® Compleats^® are shelf-stable microwavable meals that offer convenience and value for consumers.

If the plant meets LEED certification requirements when it opens in early 2010, it will be one of the first food industry facilities to do so. To achieve this goal, our plant team is integrating the components listed below during the construction of the 39.5-acre plant campus:

• Using recycled content for the shell of the plant — precast concrete, steel and other materials. The frame alone will top 58 percent recycled content;
• Managing construction waste by using separate dumpsters for scrap wood, steel, concrete and paper-based materials;
• Installing a heat recovery system that retains heat from ammonia, air compressors, boilers and other systems. The captured heat will be routed to a holding tank and used to heat the plant’s offices and preheat water for plant washdown;
• Using a gray water system that will replace 100 percent of the water used to flush toilets. LEED typically awards credits for gray water use at 20 percent to 30 percent in the typical commercial/office application;
• Employing a low-maintenance, no-irrigation landscape across the 39.5-acre campus;
• Designating preferred parking for car-/van-poolers;
• Providing showers for bicycle commuters and all employees; and
• Installing reflective white membrane roofing and concrete paving for passive cooling and heat island effects.

Sustainability Best of the Best

We expanded our Best of the Best competition to include a sustainability category in 2008. Plants applying for this award demonstrated how their employees are working to achieve goals through special projects targeted toward decreasing the plant's impact on the environment.

To encourage innovative solutions among our plants, we expanded our Best of the Best competition in 2008 to include a sustainability category. Plants applying for this award have to demonstrate how their employees are working to achieve goals through special projects that are targeted toward decreasing the plant’s impact on the environment.

Thirty-three entries were submitted for judging. A panel of 10 judges reviewed and scored each entry to select five finalists. Each finalist team then presented for a panel of judges via an Internet-based platform. Below is a synopsis of these projects.

The Austin (MN) Plant focused on a plant-wide initiative to reduce energy and water consumption and to improve recycling. They used checklists, increased communication efforts and developed operator training. These efforts contributed to a 200,000 gallons per day water reduction, a year-over-year recycling increase of 9 percent and flat energy use despite increased year-over-year production levels.

The Diamond Crystal Brands plant in Savannah, GA made plant-wide waste management and recycling improvements. The plant developed a relationship with a new recycler who was willing to accept additional materials, increased discussion about recycling during team meetings and created a centralized pick-up location for recyclable materials. These efforts reduced the year-over-year total for solid waste sent to the landfill by 24.5 percent.

The Jennie-O Turkey Store Barron (MN) Plant also deployed team-wide recycling and waste management improvement projects. Plant-wide communications focused on a “green energy lifestyle” and incorporate messages about increasing recycling.

The Jennie-O Turkey Store Faribault (MN) Plant used communications, feedback, audits and follow-up with employees across all divisions to generate a year-over-year water savings. The water reuse program saved more than 4 million gallons, which also reduced annual spend for energy, water treatment chemicals and sanitation labor.

Rochelle Foods in Rochelle, IL, made a comprehensive effort to reduce energy, water and solid waste. Their program focused on expanding recycling and reducing energy and water consumption. They contribute ongoing success to communications showing measurable progress resulting from each employee’s dedicated efforts.

After the judges scored each project and presentation, a Sustainability Best of the Best Champion was selected. The inaugural winner was the Austin Plant's entry.

Living Our Principles: Philanthropy

Employees Countrywide Donate to Charities in Local Communities

Jennie-O Turkey Store employees participated in the American Cancer Society's Relay for Life event in October 2008 to support cancer research. The company provided support as a gold-level sponsor for the event in Kandiyohi, MN.

Hormel Foods has facilities in communities throughout the United States. In these communities, employees have led efforts to support people in need through donations to local organizations in the spirit of Our Way. Often, the employee-led community involvement is coordinated by exemplary employees who volunteer for the local employee enrichment committee where they work. For example, in fiscal years 2007 and 2008, Hormel Foods employees adopted local families through the Salvation Army, and others participated in charity walks for the American Cancer Society. These efforts are highlighted below.

Salvation Army

Employees at several plants have organized donations for the Salvation Army’s Adopt-A-Family program. As part of this program, employees purchased toys for children, clothing items and groceries. In fiscal years 2007 and 2008, employees at Dold Foods (Wichita, KS), the Fremont (NE) Plant, Rochelle Foods (Rochelle, IL), Lloyd’s Barbeque Company (St. Paul, MN), the Osceola (IA) Plant, the Beloit (WI) Plant, the Austin (MN) Plant and the Corporate Office (Austin, MN) participated in the program.

American Cancer Society

Annually, multiple Hormel Foods locations support the American Cancer Society’s Relay for Life event — the organization’s signature event, which often lasts for 24 hours and takes place throughout the night. The Hormel Foods Beloit (WI) Plant has participated in Relay for Life for more than 10 years. During this period, they have collected nearly $40,000 to support the ongoing efforts to fight cancer and raise awareness of cancer prevention and treatment.

Jennie-O Turkey Store also participated in the American Cancer Society’s Relay for Life. They raised money by organizing events at multiple Jennie-O Turkey Store locations. In addition, teams were assembled and participated in the event’s Kandiyohi County, MN, and Barron County, WI, walks.