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Innovative Products
As a trustworthy provider of safe, wholesome, nutritious and great-tasting products, consumer loyalty is always at the forefront. We generate value for consumers by creating innovative products that fit their changing needs, by growing new product sales for long-term growth for our shareholders and by remaining true to our hardworking employees. We are proud that 34 of our brands are No. 1 or No. 2 in their respective market categories.
New Product Innovation
In 2006, Hormel Foods set the ambitious goal of reaching one billion dollars in sales by 2010 from new products introduced since the year 2000. We achieved $1.3 billion in sales in fiscal year 2008 — two years ahead of schedule.
Through growth driven by innovation, we aim to reach $2 billion in total sales of products created since 2000 by the year 2012.
Building on this success, the company announced the Go for $2B by 2012 goal, which aims to achieve growth through innovation — $2 billion in total sales of products created since 2000 by the year 2012.
Hormel Foods was able to meet the initial challenge earlier than anticipated because of the success of new products developed across all five of our business divisions — Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods and International. These new products continue to expand the portfolio of products offered by each division, which then combine to form a balanced business model.
Hormel® Compleats® are shelf-stable microwavable meals that offer convenience and value for consumers.
In fiscal year 2007, we released a host of new product innovations across several product lines. The Hormel® Natural Choice® line was extended to chicken breasts, roast beef, uncured bacon and Canadian bacon, and Farmer John® California Natural*® sausages. Our 10-oz. product known as Hormel® microwave trays was repositioned as Hormel® Compleats®. In early 2008, the green label Hormel® Compleats® microwave meals, which meet government requirements to make a health claim for such criteria as fat, calories, fiber and sodium was launched. Other new products introduced in fiscal year 2008 were Dinty Moore® Big Bowls, Hormel® Natural Choice® pepperoni and salami, Austin Blues® pulled chicken and Farmer John® California Natural*™ seasoned boneless pork chops, Hormel® Chili Master™ and a new sandwich variety of Hormel® Party Trays.
Innovation Requires Collaboration
The company established the Research and Development division in March 1956 to “improve not only the methods Hormel Foods uses, but the products that Hormel Foods offers the consumer.” In addition to microbiologists and chemists, the Research and Development division houses the company’s food scientists and corporate chefs who work with product managers and customers to develop new products and recipes that meet the emerging needs of the consumer. This team also works in conjunction with a New Products Development team.
We also find ways to get employees in our corporate office involved in the product development process because we know our toughest critics are our own employees. Through tasting panels and food diaries, employees are invited to participate in the innovation process and help evaluate our products. We also have ongoing projects with research-based organizations and universities around the world.
This collaborative spirit has also led to the creation of the Culinary Enrichment and Innovation Program (CEIP), which is a partnership between the company’s foodservice division and The Culinary Institute of America. CEIP was created to build tomorrow’s culinary leaders through a unique leadership program with an elite class of commercial and noncommercial chefs from around the United States. The program includes four, three-day educational sessions that focus on creativity, innovation, leadership and management.
Innovation Across the Globe
The Hormel Foods Idea and Innovation Center in China opened in February 2008.
Innovation at Hormel Foods expands beyond our U.S. operations, as evidenced by the opening of the Idea and Innovation Center in the Baoshan District of Shanghai, China. The 5,000 square-foot center opened in February 2008 and will facilitate the entire creative process, from ideation to testing and manufacturing, with a focus on developing products for Asian consumers. The facility also includes a sensory panel room for the evaluation of products, as well as a fully functional duplicated plant.