AUSTIN — Hormel Foods is pushing to think outside the jar, and the country, to grow this year and for years to come.
Speaking at the annual meeting Tuesday at Austin High School, Hormel President and CEO Jeffrey Ettinger said it is working at expanding the Skippy peanut butter line, which it bought last year for $700 million. Right now, the product is sold in a jar, but he said consumers are getting used to eating peanuts in cereal and other products.
Hormel wants to capitalize on that by finding products that use peanuts but not necessarily in a jar, he said. "We see Skippy as a great innovation platform," he said.
It will take some time to develop those products so don't expect to see anything until 2015, Ettinger said.
But the new products will fit in with Hormel's move to become stronger in lunches; it also has Spam, chips and other products eaten at lunches. One of its newest products, the Rev, a wrap with various meats and cheeses, sold about $30 million in the six months it was available last year, he said.
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Besides finding new ways to sell peanuts, he said the company is going to push ahead with more marketing for Skippy itself, he said.
Skippy is the No. 2 brand in the U.S. behind Jif, and it's No. 1 in the world. He wants to use the brand to grow sales internationally, he said at the the meeting attended by about 1,500 people.
The company did very well last year with record sales but its international division outpaced the company as a whole.
The company, with headquarters and a major plant in Austin, had record sales of $8.8 billion, up 6 percent over 2012, with net earnings per share rising 5 percent. Leading way was the International & Other division, which had an operating profit increase of 43 percent, volume increase of 19 percent and dollar sales rising 23 percent, according to the company.
"It's doing its share to contributing to the wonderful results Jeff (Ettinger) shared with you before," said James Snee, head of Hormel Foods International Corp.
There is much more room for growth in that arena, he said. "We are just scratching the surface."
Snee showed a video highlighting Hormel leaders in South Korea, China, the Philippines and Canada, and what they are doing there to increase markets and profits.
In those countries, Hormel has come up with products made specifically for the country and its tastes, he said.
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Hormel Foods Corp. President and CEO Jeffrey Ettinger has spoken out in favor of immigration reform, a key issue for a company with a diverse work force.
He and other Austin community leaders went to Washington last spring to talk with members of Congress on reform. Ettinger wants a system that leads to legalization, permanent residency or citizenship.
At a press conference before the Hormel annual meeting Tuesday in Austin, he said this is a case where the interests of the business and general community are linked. He doesn't want to see immigrants "living in shadows," afraid to do things for fear authorities will find they are here illegally, he said.
Ettinger said he doesn't want to see a piecemeal approach but a national policy. "We hope it's the right time to do it," he said.
He came to Austin more than 20 years ago from California, which is more culturally diverse. Now, he's seeing the diversity come to Austin. "The Austin community has certainly changed over the years" because of immigrants, he said.
According to its website, ethnic minorities make up 64 percent of the company's work force.
Many immigrants live in the fear because they came here as children and don't want their immigration status known. That makes them less likely to become part of the community, he said.
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