Hormel Foods International - library.corporate-ir.netlibrary.corporate-ir.net/library/71/712/71258/items/168825/Bross.pdf · Hormel Foods International Richard A. Bross ... Build

Hormel Foods Corporation

Hormel Foods International

Richard A. Bross

Group Vice President/ President Hormel Foods International


International

Grow….

ProfitablyGrow…. Grow


Continuously Searching for Incremental Growth and Value

Finding Growth and Value in Interesting Places


Consolidated VolumeIncluding Volume From Licensees

1999 2000 2001 2002 2003 2004 2005*

CAGR = 12%


Consolidated Gross MarginsIncluding Royalties From Licensees

1999 2000 2001 2002 2003 2004 2005

CAGR = 9%


Build Two Important Brands#1 - SPAM®

Exports Plus EU and Korea Sales

2001 2002 2003 2004 2005

VolumeRevenue

CAGR # = 4%CAGR $ = 10%


Build Two Important Brands#2 - STAGG®

2001 2002 2003 2004 2005

VolumeRevenue

STAGG® Exports with EU Sales

CAGR # = 7%CAGR $ = 14%


Oct Nov Dec Jan Feb Mar Apr May

+3%Category+48%STAGG®

(000 KG’s)Growth

2004 - 2005

Kg

(000

)Diligently Measure Brand Investment

Australia TV Campaign

+2%

ShareIncrease

+153,000

Increased Household Penetration


Build Brands Through Advertising

STAGG® Australia TV

SPAM® UK TV

SPAM® Korea TV


Build our Joint

Ventures

Philippines


SALES POUNDS (000)SALES US $ (000)

1998 1999 2000 2001 2002 2003 2004 2005 1998 1999 2000 2001 2002 2003 2004 2005

CAGR = 21% CAGR = 20%


SALES POUNDS (000)SALES US $ (000)

2001 2002 2003 2004 2005 2001 2002 2003 2004 2005

CAGR = 32% CAGR = 27%


Corned Beef

Luncheon Meats

Other Canned Other Refrigerated

Hotdogs

Refrigerated Meats = 79%Canned Meats = 21%

59%

5%6%

10%

20%

(LBS.)CAGR (1998-2004) = 10%

CAGR (1998-2004) = 19.3%


Cavite Plant, Offices, and Welfare Areas

Cavite Plant and Water Treatment


275,000 SQUARE FOOT FACILITY350,000 LBS. PER DAY HOT DOG PRODUCTION CAPACITY

(200,000 LBS. MARIKINA PLANT HOT DOG CAPACITY)100,000 LBS. HAM, BACON, & COLD CUT CAPACITYPLANT GRAND OPENING NOVEMBER 5, 2004

CAVITE PLANT




Hot Dog Stuffing

Hot Dog Batching SystemHot Dog Stuffing and Emulsion Storage and Pumping


Build our Joint

Ventures

TMChina


Retail Total28%

Export Sales13%

Offal2%Fresh Pork

13%

Foodservice44%

(+18%)

(+166%)

(+16%)(-1%)

(+27%)

Total ChinaValue Share & CAGR by Segment

2001-2005

All SegmentsCAGR = +23%


Wal Mart Grand Opening - Shanghai

The first Wal Mart store in Shanghai opened on Thursday –July 28

Strong Hormel Foods China presence


Joe Hatfield Senior Vice President,Wal MartWal Mart Grand Opening - Shanghai





Woody Guo - SHFC General Manager




Shanghai

now

has a

Formula

One

Race



Designated Meat Productsof the

Training Bureau of China State Sports

In April 2005, Hormel Foods was chosen as exclusive supplier of meat products to the Training Bureau of State Sports

All Chinese Olympic athletes will be enjoying HORMEL® meat products through the 2008 Beijing Olympics

The press conference announcing this registered 38 stories, including TV coverage, plus much exposure on the internet


Sample of Press Coverage

China Daily Newspaper, April 19, 2005:

Exclusive meats for China athletes

Hormel Foods Corporation China, a sino-American joint venture, has signed a four-year agreement with the Training Bureau of China General Administration for Sports, to deliver meat products for the nation’s athletes…

…“We are glad to use meats from a world-famous company, which specializes in producing meats with high quality and complete nutrition. A healthy and strong body is of great significance for our athletes if they want to make greater contributions in the 2008 Olympics,” said Liu Wenxiong, a top official from the Bureau. China won an unprecedented 32 golds, 17 silvers, and 14 bronzes at last year’s Athens Olympics and hopes to do even better three years later in Beijing.


HORMEL® – Energy to Fuel China’s Olympic Athletes

Free-standing coupon insert in Betty’s Kitchenmagazine

Coupons untried before

Shanghai HualianSupermarkets

– Largest China food retailer


HORMEL Brand Builders

HORMEL brand persons

Young, energetic, college student or graduate, modern appearance, athletic

Walk to consumers and invite them to try our products

More intense training

Very strict message to deliver

Miked for volume


Key StrategyBuild Our Branded

Processed Meat Business

BeginMass Media Advertising

inShanghai

in2006

Shanghai


HORMEL branded value-added fresh meat in supermarkets

HORMEL branded fresh meat shops

Control from parent stock to the consumer

Fresh Pork control points

Feed Mills

Genetics-Pork flavor-Health status-Carcass quality

Feed Supply-Nutrition-Steroids and Hormones free

Pig raising barns-Management-Drug application

Slaughtering-Product hygiene-Food safety-Carcass chilling

Delivery- Cold chain

Retail counter-Maintaining the cold chain

- Freshness

Key StrategyBuild a Branded Fresh Meat Business

2002 2003 2004 2005

Number of Branded Retail Outlets


HORMEL®Fresh Meat


HORMEL®Fresh Meat


Key StrategyContinue to Grow Foodservice

Innovation of products and customer service

Continue to be a major supplier to YUM!

2002 2003 2004 2005

Total Revenue USDFoodservice

CAGR = +27%


Key StrategyContinue to Grow Foodservice

Co-branding commencing in SUBWAY stores

Entry into STARBUCKS– Sliced meats and hot

dogs in Beijing– Sliced meats in

Shanghai


2002 2003 2004 2005 June YTD

Begin with industrial salesfor further processingAdd more value-addedproductsSell HORMEL brandedproducts in restaurants andC-storesCreate a branded business inJapanese supermarkets

– In discussions withWal Mart

Hired Japan Country Manager

Key StrategyProfitably Grow Japanese Exports

KG’s(000)

CAGR = +166%Japan Exports


Thanks for joining us for this importantInvestor Day

Hormel Foods International - library.corporate-ir.netlibrary.corporate-ir.net/library/71/712/71258/items/168825/Bross.pdf · Hormel Foods International Richard A. Bross ... Build

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