… Hormel Foods is on track with strategic investments to boost capacity. The company incurred capital expenditures of $54 million in the third quarter of fiscal 2021. It has been making investments in plant-based offerings and is witnessing growth in its plant-based pepperoni and crumbles products...

 

 

Capacity Expansion Aids Hormel Foods (HRL), Costs Inflated

Hormel Foods (HRL) is strengthening its business on the back of strategic acquisitions. However, the company is encountering inflationary pressure.

 

By Zacks Equity Research

via Entrepreneur - October 12, 2021

 

Focus on capacity-expansion endeavors including buyouts are working for Hormel Foods Corporation HRL. The company is also benefiting from acceleration in the Foodservice business as well as sustained demand for retail and deli products. That being said, the food company is facing challenges related to higher costs.

 

Let’s discuss further.

 

What’s Working for Hormel Foods?

 

Hormel Foods has been strengthening its business on the back of strategic acquisitions. On Jun 7, 2021, the company acquired the Planters snacking portfolio from The Kraft Heinz Company KHC. The buyout includes the Planters, NUT-rition, Planters Cheez Balls and Corn Nuts brands along with three manufacturing units. Prior to this, the company acquired a Texas-based pit-smoked meats company, Sadler's Smokehouse, in March 2020. The buyout is in sync with Hormel Foods’ initiatives to strengthen its position in the foodservice space.

 

Several other companies in the food space have been benefiting from their focus on undertaking strategic acquisitions. This has been working well for players like Tyson Foods Inc. TSN and The Hershey Company HSY.

 

Hormel Foods is on track with strategic investments to boost capacity. The company incurred capital expenditures of $54 million in the third quarter of fiscal 2021. It has been making investments in plant-based offerings and is witnessing growth in its plant-based pepperoni and crumbles products...

 

Is All Rosy For Hormel Foods? ... 

 

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https://www.entrepreneur.com/article/390658