Hormel Foods, the prominent U.S. food group, has divested its Health Labs division to Lyons Magnus, owned by Paine Schwartz Partners, for an undisclosed amount. This acquisition represents a significant move within the food and beverage industry, emphasizing Lyons Magnus’s commitment to the ever-evolving food and drink consumer trends.
In the wake of this acquisition, Lyons Magnus announced the formation of Lyons Health Labs, which will prioritize the development of nutritional and health-focused products. These offerings are designed to assist consumers facing challenges such as dysphagia, unintended weight loss, digestive health issues, and hydration requirements.
Lyons Health Labs will operate as a dedicated unit within Lyons Magnus and will be headquartered in Fresno, California. It aims to integrate operations and brands from Hormel Health Labs with Lyons Magnus’s existing health and nutrition portfolio. The product line inherited from Hormel includes popular items such as Hormel Vital Cuisine 500 Shakes, MightyShakes Frozen, and Instant Custard Mix.
Upon rebranding, several Hormel labels, including ReadyCare, Thick & Easy, Vital Cuisine, Med Pass 2.0, MightyShakes, and Magic Cup, will be transitioned to the Lyons Health Labs identity. Furthermore, the new entity intends to innovate and develop products that cater specifically to the nutritional needs of consumers with various health conditions.
Jim Davis, CEO of Lyons Magnus, expressed enthusiasm about the newly launched Lyons Health Labs. He stated, “We are thrilled to formally launch Lyons Health Labs. With the addition of Hormel Health Labs to our innovative nutrition and health business, we are entering the next phase in our journey to evolve and grow our core businesses.” Davis added that the combination of both companies’ strengths would position Lyons Health Labs as a leader in health and nutrition, ready to fulfill the demands of today’s foodservice operators while driving future innovations.
This strategic shift follows Hormel Foods’ recent adjustments to its annual net sales forecast. The company revised its projected figures for the fiscal year 2024 to between $11.8 billion and $12.1 billion, down from the previously anticipated range of $12.2 billion to $12.5 billion. Hormel cited “lower commodity prices and production disruptions” at a facility in Virginia as key factors behind this modification.
In the third quarter, Hormel Foods reported a 2.2% decline in net sales, reaching $2.9 billion, with retail sales decreasing by 6.6% to $1.77 billion. Such developments highlight the importance of monitoring food and beverage industry trends for proactive decision-making.
As Lyons Health Labs embarks on this new venture, industry observers will undoubtedly watch closely to see how this rebranding and realignment influence the market dynamics and meet the demands of increasingly health-conscious consumers.