Austin, Minnesota based Hormel foods recently reported their first quarter earnings came in better than expected. The grocery products category accounted for the fastest sales growth for the quarter, which has been a common theme amongst food companies during 2020. This category overall is expected to decline slightly from 2020 levels that saw consumers panic buying food from grocery stores. In order to help augment this category going forward, Hormel announced the acquisition of Planters from Kraft–Heinz in a $3.3 billion dollar cash deal (Quazar Capital was not involved in this transaction).
Also in positive news, Hormel noted that it is expecting a nice rebound in business from their restaurants, hospitality and other foodservice customers during 2021. Hormel CEO Jim Snee said, “We expect a recovery in our foodservice business given the acceleration in shipments during recent weeks.” This would be a welcome change for the food service industry players that saw significant declines last year.
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