Celebrating 116 Years—Planning Ahead
Much has changed in the food industry and the world in 116 years, but over the course of the evolution of our company, the values on which Geo. A. Hormel & Co. was built—integrity, an uninterrupted quest for quality and innovation, a respect for each other and commitment to community—still define Hormel Foods today.
Read about the Hormel Foods Story—the people, the key decisions and the major events that propelled Geo. A. Hormel & Co. from a fledgling entrepreneurial enterprise in an abandoned creamery to its present-day status as a publicly traded, multi-national food company.
The Early Years
“I think it was the sausage,” explained George A. Hormel, when asked to attribute his company’s ability to survive the financial Panic of 1893.
George A. Hormel, an ambitious entrepreneur and the son of German immigrants, established today’s Hormel Foods Corporation in 1891 as Geo. A. Hormel & Co. in Austin, Minn.
George built his first meatpacking plant in an abandoned creamery located on the banks of the Red Cedar River, approximately one-half mile northeast of Austin. Within three years, he erected a large two-story brick building behind the creamery. This was the first of a number of expansions at the site over the ensuing years.
Sales of fresh pork products flourished in the late 1890s. The company set up its first branch sales office in Minneapolis, Minnesota in 1901. Additional branches were opened in the years that followed, including a distribution center in Duluth, Minn. in 1904 and offices in St. Paul, Minn. in 1905; Chicago, Ill. in 1913; Dallas, Texas in 1916; and Atlanta, Ga. in 1918.
Growing and Thriving
In 1917, the United States entered World War I. By that same year, Geo. A. Hormel & Co. had instituted an impressive export business that accounted for approximately one-third of the company's sales volume. By 1924, more than one million hogs were being processed annually at the Austin plant—nearly a 200 percent increase over the number handled in 1922.
Geo. A. Hormel & Co. developed the world's first canned ham in 1926. In 1927, the company initiated a unique distribution system for its products involving "sausage trucks," vans driven by salesmen who sold and delivered products on specific routes rather than relying on product distribution by refrigerated railroad cars.
The company's founder, George A. Hormel, retired from handling the day-to-day operations of the firm in 1927 at the age of 67, but continued to serve as chief executive officer. His son Jay was named acting president and became president in 1929 when George was elected chairman of the board of directors.
The first Geo. A. Hormel & Co. manufacturing facility to produce branded products outside Austin was established in Los Angeles, Calif. in 1928. By 1933, distribution centers had been set up in 14 cities across America.
Daring New Products, Dazzling Promotions
It was Jay C. Hormel who brought a penchant for invention to his father’s company. Jay's innovative thinking brought about a host of exciting new products, including Dinty Moore® beef stew and Hormel® chili in 1935. In 1937, Geo. A. Hormel & Co. introduced a product that would become world-renowned–SPAM® luncheon meat.
In a bold marketing move, Jay C. Hormel established the Hormel Girls, a traveling troupe of 60 musical women, to promote Geo. A. Hormel & Co. products after World War II. No one had ever seen the likes of a women’s drum and bugle corps that toured, sang and sold Geo. A. Hormel & Co. products.
By the company's 50th anniversary in 1941, the number of employees had risen to nearly 4,500 and sales had climbed to $74.6 million. Geo. A. Hormel & Co. was poised for another 50 years of growth. In 1946, H.H. Corey succeeded Jay C. Hormel as president, but his commitment to innovation was firmly in place.
In 1959, the one-billionth can of SPAM® luncheon meat was produced. That same year Geo. A. Hormel & Co. rolled out Little Sizzlers® pork sausage and, in 1963, Cure 81® ham was introduced.
Innovation Milestones
Construction of modern and enlarged Geo. A. Hormel & Co. manufacturing plants proceeded in the 1970s and 1980s. A new 1,089,000 square-foot plant—equivalent to approximately 23 football fields—opened in Austin in 1982, featuring state-of-the-art technology in processing equipment. This $100 million capital investment was the largest in Geo. A. Hormel & Co. history.
Another major undertaking was completed in 1986 when Geo. A. Hormel & Co. acquired Jennie-O Foods, the nation's largest privately owned turkey processor. Based in Willmar, Minn., the company manufactures whole and processed turkey products.
In recognition of its successes in the introduction of new meat and food products, Geo. A. Hormel & Co. was chosen "New Products Company of the Year" by Prepared Foods magazine in 1987. Geo. A. Hormel & Co. introduced more than 130 new selections during an 18-month period prior to April 1987 as the company worked to meet ever-changing consumer lifestyles and food trends. Prepared Foods magazine again presented the “New Products Company of the Year” award to Hormel Foods in 2000.
In 1988, Forbes Magazine called Geo. A. Hormel & Co. the most innovative firm of the year. In March 2000, Meat Marketing & Technology magazine named Hormel Foods the “Company of the Decade.” Hormel Foods has been named one of “The 400 Best Big Companies in America” by Forbes Magazine for nine consecutive years since 1999.
A New Name, a New Role
In 1993, the name of Geo. A. Hormel & Co. was officially changed to Hormel Foods Corporation to more accurately reflect the corporation's role and industry presence as a diversified consumer-branded marketer of value-added products. Hormel Foods unveiled new corporate and brand marks that conveyed the company's emphasis on product innovation, convenience and freshness.
In the 1990s, Hormel Foods also unveiled a number of food products that appealed to consumers’ newly emerging tastes, including:
In 2006, our “rookie of the year” was our Hormel Natural Choice line of deli sandwich meats. These items are preservative-free and a perfect fit for the growing demand for natural products.
A World of Tastes
Pepperoni, a native Italian food, has been a longtime American favorite and a well-known Hormel Foods specialty. Beyond our fame for our authentic Italian dry sausages, Hormel Foods has further broadened our selection of ethnic foods through the years to meet the growing diversity of America's population.
We’ve introduced a full line of Chi-Chi's® Mexican sauces and salsas. In addition, we market a wide array of Asian foods under the House Of Tsang® brand, including sauces, marinades, soups and oils. We acquired the Peloponnese® brand in 1995 to produce natural, healthful specialty foods from the Mediterranean region, including whole, chopped and pitted olives, sweet peppers, olive oil, salad dressings, stuffed grape leaves (dolmas) and many other selections for retail, foodservice and deli businesses. We sell varieties of natural Mediterranean-style rice and couscous under the Marrakesh Express® brand.
Going Global
For Hormel Foods, the consumer foods marketplace is quickly evolving with new global dimensions. Since the late 1990s, when the company's expansion into international markets received special emphasis, we’ve opened new avenues of opportunity, beginning with a joint venture with Grupo Herdez, S.A. de C.V., in Mexico City to market Hormel Foods products in Mexico. Grupo Herdez soon formed a second joint venture with the company to feature authentic Mexican choices under the Herdez, Bufalo, and Dona Maria brands in the United States.
We have established a strategic license with a Danish company, Tulip International, to manufacture Hormel Foods products in Denmark for sale in the United Kingdom.
The changing economy of Eastern Europe and the advancement of Third World nations combined with exploding communications capabilities have driven our holding of minority interests in several entities operating in international markets. They are: Campofrio Alimentacion, S.A., a leading food enterprise headquartered in Madrid, Spain; Pure Foods Corporation in Manila, Philippines; and Okinawa Hormel Limited in Okinawa, Japan. We have also arranged joint ventures in China to manufacture Hormel Foods branded pork products at plants in Shanghai and Beijing.
A Position of Strength
Financially, Hormel Foods has performed admirably, with 42 consecutive years of increased annual dividends to its shareholders. Since becoming a public company in 1928, the corporation has never missed a dividend payment.
Historically, we have maintained a strong financial balance sheet to help meet long-term strategic goals. In 2002, the Hormel Foods Board of Directors authorized the repurchase of up to 10 million shares of our common stock—another reflection of our solid position.
Today, Hormel Foods is committed to providing consumers with high-quality, high-value branded products that are flavorful, nutritious and convenient. Our company's century-old tradition of product excellence and innovation will continue to instill widespread consumer loyalty and trust.