Hormel Foods has announced a strategic move to sell its whole-bird turkey business to Life-Science Innovations (LSI) as part of its efforts to refine its portfolio. This decision aligns with the food and beverage industry trends that emphasize specialization and adaptability in a competitive market.
In the transaction, Hormel will transfer ownership of key assets, including its production facility in Melrose, Minnesota, the Swanville feed mill, and related transportation logistics. This sale does not include the Jennie-O brand name or its extensive range of turkey products, which remain a vital part of Hormel’s offerings.
While the specific financial terms of the transaction remain undisclosed, Hormel’s interim CEO Jeff Ettinger commented, “Our strategy for sustainable, profitable growth centers on expanding our value-added protein portfolio to meet evolving consumer needs, while reducing our exposure to more volatile, commodity-driven businesses.” This highlights the company’s commitment to aligning with current food and drink consumer trends and focusing on value-added offerings.
John Ghingo, Hormel’s president, noted that this divestment is part of broader efforts to “simplify” their portfolio, as mentioned in December. This aligns with Hormel’s previous decision to work with Forward Consumer Partners to spin off its Justin’s brand of nut butters and chocolate snacks, further illustrating the company’s strategic direction in the food and drink business.
Ghingo added, “This transaction is an important next step in our evolution.” He emphasized that a more focused turkey portfolio will enhance the value-added aspects of the Jennie-O brand. Hormel is dedicated to ensuring a smooth transition for its stakeholders, including team members, consumers, and suppliers.
The transaction is scheduled to finalize by the end of Hormel’s second fiscal quarter of 2026, pending customary closing conditions. In addition, LSI, based in Minnesota and partnered with Turkey Valley Farms, will take over supply contracts with third-party turkey growers dedicated to the whole-bird segment. To support ongoing operations, LSI will provide co-manufacturing services to Hormel until the close of fiscal 2026, ensuring uninterrupted fulfillment of customer orders.
In a separate development, Hormel Foods shared preliminary results for the first quarter of fiscal 2026 ahead of its presentation at the CAGNY event. The company anticipates a 2% year-on-year increase in organic net sales, projecting around $3 billion for the quarter. This marks Hormel’s fifth consecutive quarter of year-over-year organic net sales growth, signifying resilience in a dynamic food and drink market. Diluted earnings per share for this period are expected to be $0.33.
Hormel also stated that the sale of the whole-bird turkey business is likely to have a minimal impact on its adjusted financial results for 2026. The complete first-quarter results will be released on 26 February, allowing stakeholders to gain further insights into the company’s performance and strategic positioning within the food and beverage landscape.
