Direct Answer
Hormel Foods is a Dividend King with 57+ consecutive years of dividend increases, built on iconic brands including SPAM, Skippy peanut butter, and Planters nuts, with ongoing work to integrate acquisitions and navigate commodity cost cycles.
Hormel Foods (HRL): Branded Protein and Food Products Dividend King
Company Snapshot
| Ticker | HRL |
|---|---|
| Exchange | NYSE |
| Sector / Industry | Consumer Staples / Packaged Foods and Meats |
| Headquarters | Austin, MN |
| Founded | 1891 |
| Revenue (FY2024 approx.) | ~$11.9B |
| CIK | 0000048465 |
| SEC EDGAR | View filings |
What does Hormel Foods do?
Hormel Foods Corporation manufactures and markets a diverse portfolio of branded food products, with particular strength in protein (pork, turkey, and chicken), nut snacks, and shelf-stable foods. Founded in 1891 by George Hormel in Austin, Minnesota as a fresh pork packing plant, the company has evolved into a branded consumer packaged goods company with more than 40 brands.
Hormel is best known for SPAM (canned luncheon meat, introduced 1937), Skippy peanut butter (acquired 2013), Jennie-O turkey products, Planters nut snacks (acquired 2021), Columbus charcuterie, and the Hormel brand itself (chili, Dinty Moore stew, Natural Choice). The Horton family maintains a significant but not controlling ownership position. Hormel's fiscal year ends in late October.
Business segments
Hormel reports through two primary segments:
- Retail (~60% of revenue): Branded products sold through grocery, mass merchandise, club, drug, and e-commerce channels. Includes SPAM, Skippy, Planters, Jennie-O retail turkey, Hormel chili, Dinty Moore stew, Natural Choice, and others.
- Foodservice (~40% of revenue): Products sold to restaurants, hotels, healthcare facilities, schools, and other institutional foodservice operators. Includes Columbus premium charcuterie, Burke pizza toppings (pepperoni, sausage), Bacon 1 precooked bacon, and Cafe H global flavors.
International revenue (primarily SPAM in Asia-Pacific and Europe) runs through both segments or is separately tracked depending on the reporting period.
Jennie-O turkey and avian influenza risk
Jennie-O Turkey Store is Hormel's turkey processing business and one of the largest turkey processors in the United States. The turkey segment is subject to avian influenza (bird flu) outbreaks, which can require depopulation of infected flocks and cause significant supply disruption and earnings volatility. Highly Pathogenic Avian Influenza (HPAI) outbreaks in the U.S. in 2015 caused approximately $700M in Jennie-O losses and required significant flock rebuilding. Subsequent outbreaks in 2022-2023 again affected the turkey industry. Hormel carries insurance for some HPAI losses but the segment remains a source of earnings variability.
Planters acquisition and impairment
The $3.35B Planters acquisition (2021) was Hormel's largest ever and represented a bet on the growing snacking and nut category. Planters brought a portfolio of iconic nut brands with strong retail shelf presence. However, the acquisition coincided with challenging supply chain conditions, commodity inflation affecting nut costs, and category softness that compressed the segment's margins below expectations. In fiscal 2023, Hormel recorded approximately $1B in goodwill and intangible asset impairment charges related to Planters and other businesses, reflecting the gap between acquisition price and current expected cash flows. The company has since worked to restore Planters to growth through innovation and distribution expansion.
Frequently asked questions
How does Hormel Foods make money?
Hormel earns revenue by manufacturing and selling branded food and protein products. Its portfolio spans refrigerated grocery (SPAM, Hormel chili, Dinty Moore stew), deli foods (Jennie-O turkey products, Natural Choice deli meats), foodservice (Columbus charcuterie, Burke pizza toppings), and international markets. Key acquisitions added Skippy peanut butter (from Unilever, 2013) and Planters nut snacks (from Kraft Heinz, 2021 for ~$3.35B). Hormel generates most revenue in North America across retail grocery and foodservice channels.
What is Hormel's Dividend King status?
Hormel Foods is a Dividend King, having increased its annual dividend for more than 50 consecutive years (57 consecutive years as of 2025). This makes Hormel one of a small group of S&P 500 companies with more than five decades of uninterrupted dividend growth. The company has maintained this streak through multiple recessions, commodity cycles, and business disruptions, reflecting its commitment to returning cash to shareholders and the relative stability of its branded food business.
What is the Planters acquisition and how has it performed?
Hormel acquired the Planters snack nuts brand from Kraft Heinz in June 2021 for approximately $3.35B. Planters is one of the most recognized nut snack brands in the United States and included brands like Planters peanuts, cashews, and mixed nuts, as well as NUT-rition and Corn Nuts. The acquisition was intended to expand Hormel's presence in the snacking category and diversify beyond protein. The integration faced challenges including supply chain disruption and category softness, contributing to earnings pressure in 2022-2023. Hormel wrote down approximately $1B in impairment related to the Planters and other businesses in fiscal 2023.
How important is SPAM to Hormel?
SPAM (spiced ham, introduced in 1937) remains one of Hormel's most iconic brands and is globally distributed, with particular strength in Hawaii, Guam, and Asian markets. While exact revenue is not broken out, SPAM is sold in approximately 44 countries and benefits from cultural entrenchment in Pacific Island and Asian-American communities. The brand has shown surprising resilience as affordable protein during inflationary periods and has been repositioned through flavored varieties (SPAM Lite, SPAM Teriyaki, SPAM Tocino) targeting younger consumers and diverse flavor profiles.
What are the main risks for Hormel investors?
Key risks include: raw material cost volatility particularly for hog, turkey, and nut input costs; commodity-driven revenue volatility in the Jennie-O turkey segment which is subject to avian influenza outbreaks; integration challenges and potential impairments from Planters and other acquisitions; private-label competition pressure as consumers trade down during inflation; slower organic growth in mature branded categories; and margin compression when commodity input costs rise faster than the company can push through pricing.