In the intricate tapestry of global markets, the success of a brand in one country does not necessarily guarantee its triumph in another.
Any brand setting its sights on international expansion must first be prepared to do things differently; think outside the box, or put simply, innovate. What resonates in a brand’s home country may face skepticism or indifference — among countless other economic or societal factors — in another. Brands must navigate new landscapes with new ideas. The Skippy® brand’s evolving presence in the Canadian consumer market, for example, is a testament to this reality, and innovation is what makes it a success story.
Members of the Hormel Foods International business understand the need for innovation as the company works to expand its global footprint. Skippy® products have traveled particularly far — from their classic American roots to retail shelves of Canadian grocers, to the back-of-house operations of China, to the streetside vending carts of Indonesia. Other Hormel Foods brands have undergone a similar journey.
None of that happens without innovation. With new markets come the demand for innovative approaches to accommodate the needs of local consumers.
“If we’re introducing Skippy® peanut butter to a new international market, we’re going to be talking about it a lot differently than we would in a market where it’s already super well established,” said Swen Neufeldt, group vice president of Hormel Foods and president of Hormel Foods International. “You have to be open to understanding the nuances of a market and its consumers in order to get the most out of your operations there. We are always optimizing, evaluating and innovating.”
China Evolving Beyond Peanut Butter
Thanks to creative thinking, the Skippy® brand has made remarkable inroads among Chinese consumers. According to Norman Gu, president of Asia Pacific for Hormel Foods International, the brand already possesses around a 60% market share in China within the peanut butter category. China collectively is also the largest worldwide consumer of peanut butter annually. That’s a plus for Hormel Foods, of course, yet it leaves the company with limited space for growth. So how about another category?
In America, peanuts are primarily used in two categories: snacks and as a peanut butter spread. In China and other Asian countries, peanuts are much more associated with cooking. That fact got the Skippy® brand team innovating.
Recent SKIPPY® brand innovations for the Chinese market.
“If you present the Skippy® brand as a condiment,” Gu said, “that gives us a tremendous opportunity in the China market. We only possess a 1% market share in that category.” Consumer demand for peanut sauce presented an opportunity for the ever-adaptable Skippy® brand to innovate a new line of peanut butter pastes, specifically designed for culinary use as an ingredient.
We truly want to be a global branded food company, and brands like SKIPPY® enable us to really expand our product portfolio so we have a wide range of products to offer to the consumer.
Norman Gu
Innovations like this are an essential driver for success in China. According to Gu, roughly 40% of all business conducted in China in the last three years were from new-product sales, many of which fall under the umbrella of the recognizable Skippy® brand.
“There is always tremendous potential for growth in China,” Gu said. “We truly want to be a global branded food company, and brands like Skippy® enable us to really expand our product portfolio so we have a wide range of products to offer to the consumer.”
Canada Reentry To The Market
The Skippy® brand’s changing presence in the Canadian consumer market is another story of adaptation and innovation. Skippy® products first appeared in Canada in 1956, but after maintaining a six-decade presence in the hyper-competitive Canadian peanut butter market, the makers of the Skippy® brand made the difficult choice to withdraw from Canada altogether in 2017. Yet even today, years later, the brand is still largely beloved by Canadian consumers.
“The Skippy® brand resonates here. It still resonates to this day,” said Shawn Levy, Canada country manager for Hormel Foods International. “Whenever I mention the Skippy® brand to folks, I hear a lot of, ‘Oh, I love Skippy® products.’ And then the second thing I usually hear is, ‘When is it coming back?’”
The answer to that question was unclear following the brand’s 2017 departure. At the time, some feared the brand might never return to Canada. “When you’re one of so many different varieties of jarred peanut butter, it’s really hard to differentiate ourselves within that category,” Levy said. If the Skippy® brand was ever to return to Canada, its makers had to think outside the box — or in this case, the jar.
“We did some research to see where the brand was in the Canadian market, and were pleased to learn that there was still recollection of the brand,” said Juan Carlos Perez, director of marketing for Hormel Foods International. “There was brand equity. So we started thinking about how we could bring the brand back.”
SKIPPY® peanut butter returned to Canadian shelves as the signature ingredient of five all-new, innovative snacking options in May 2024
Snacking was the lane they chose. Earlier this year, Skippy® potato cookies — a project originally innovated in South Korea — were introduced to Costco shelves in Canada, and early reports indicate an enthusiastic response from consumers. A full retail launch is expected in the coming months with an additional four snacking varieties set to be announced. Beyond that, a second phase of the Skippy® brand’s rollout in Canada is also in the works, Levy said, with a handful of new snack-product innovations already on the horizon. This approach not only rekindles nostalgic affinity, but also sets a promising path for future expansions, potentially reintroducing the classic peanut butter spreads.
“We’re back in. We’re building up the brand,” Levy said. “Having this great innovation from overseas is helping, and that’s where we see the brand going. Right now, we’re building the foundation.”
The worldwide success of the SKIPPY® brand hinges not only on brand recognition, but also on our ability to deeply understand local preferences and adapt our product offerings accordingly
Swen Neufeldt
The international performance of the Skippy® brand exemplifies the indispensable role of innovation and adaptability in achieving success. From the return to Canada with a pioneering snacking strategy, to its innovative ventures in the culinary landscape of China, the Skippy® team has demonstrated a remarkable capacity to shape its offerings to the tastes of local consumers.
“The principles of marketing are largely universal. Whether domestically or internationally, our company’s aim is to determine what consumers need, and then to innovate accordingly to meet those needs,” Neufeldt said. “The worldwide success of the Skippy® brand hinges not only on brand recognition, but also on our ability to deeply understand local preferences and adapt our product offerings accordingly.”
