BiG Research Alpha Idea: Hormel Foods
Hormel Foods is a packaged foods company founded in 1891. Its main business is the
production of a variety of meat and food products (primarily pork and turkey but also beef,
chicken, fish and others) that are distributed and aimed at the final consumer. The industry
is highly competitive so Hormel focuses on product branding and quality. Hormel sells both
unbranded and branded products (there are currently 53 brands in the company’s sphere).
Hormel is very dependent on its costumers which are, mostly, major retailers and which
hold a large concentration of its revenue. Walmart, for example, represents 14% of sales.
As for raw materials, the company buys most of these through supply contracts (with price
on these contracts being variable with market prices). The primary raw materials are hogs
and turkeys. The company employs 20000 people. Hormel Foods is a dividend aristocrat,
increasing its annual dividend consecutively for the past 53 years. The United States are
the largest market for Hormel Foods, representing 94% of total revenues.
Hormel Foods is primarily engaged in the production of meat and food products and the marketing of those products throughout the United States and internationally. The company's segments are: Grocery Products, which consists of the processing, marketing, and sale of shelf-stable food products; Refrigerated Foods, which consists of the processing, marketing, and sale of branded and unbranded pork, beef, chicken, and turkey products; Jennie-O Turkey Store, which consists of the processing, marketing, and sale of branded and unbranded turkey products; and International and Other, which includes Hormel Foods International Corporation that manufactures, markets, and sells the company's products internationally.
Banco de Investimento Global, S.A. (BiG) is a privately-held, specialized financial institution, with headquarters in Lisbon, and is licensed to operate in all business areas open to the banking sector in Portugal.
BiG Research specializes in finding long term investment ideas in European and US markets.
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