Hormel looks to snack wraps for sales boost
May 24, 2013
by Keith Nunes
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AUSTIN, Minn. – Hormel Foods’ REV branded snack wraps are being shipped to retailers nationwide and the company plans an advertising campaign in July to promote the new product. The new line is viewed by the company as a way to improve sales and operating income within its Refrigerated Foods business segment.
“We are excited about the potential growth that our new Hormel REV snack wraps will bring to our Refrigerated Foods sales,” said Jeff Ettinger, chairman, president and CEO in a conference call with financial analysts on May 23.
The REV line of products will feature eight varieties, including: pepperoni, ham and cheese, peppered turkey, Meat Lovers Pizza, Italian style ham, hot pepper ham, Italian style, and spicy Italian style. Each wrap features a combination of meats, mozzarella cheese and a flatbread wrap.
Each 3-oz serving features between 15 grams and 18 grams of protein, a nutrition component that is called out on the package.
“We believe the investment we are making in the REV snack wrap rollout will establish the foundation for a beneficial new product platform for the Refrigerated Foods group,” Ettinger said.
During the second quarter of fiscal 2013, ended April 28, Hormel’s Refrigerated Foods segment had operating profit of $54,680,000, up 3 percent from $53,009,000 during the same quarter of the previous year. The segment had sales of $1,011,370,000, down 2 percent from $1,031,975,000.
Ettinger said the decline in the business unit’s sales was attributable to the planned reduction of slaughter levels at its hog processing operation and from exiting a feed sales business.
“We saw growth in retail sales of Hormel party trays, Hormel convenience bacon and Lloyd's ribs, and in food service sales of Hormel Natural Choice deli meats, Hormel Pecanwood bacon and our new Hormel Fire Braised Meats,” Ettinger said.