Smithfield Foods to set up bacon plant in US
Smithfield to set up new bacon slicing facility
Smithfield Foods has started building a bacon slicing plant in Wisconsin as part of the US meat group's plans to grow its packaged meats business.
The pork processor said the plant in Cudahy would be up and running in December. The 17,000-square-foot-facility will have four slicing lines that will increase Smithfield's bacon capacity by around 10m pounds.
In a statement, the company, owned by China's WH Group, said the move "underscores Smithfield's continued emphasis on growing its branded packaged meats business".
"It will enhance our competitiveness and help to secure the future of our bacon business and the jobs associated with it," Daniel Kapella, president of Patrick Cudahy, Smithfield's packaged meats division, said.
In February, Smithfield revamped its organisation to, it said, "accelerate the company's growth". One of the moves saw Smithfield's packaged meats division rejigged to include all of the businesses previously run under its Smithfield Farmland and John Morrell Food Group arms to create what the company called "a single cohesive division".
In 2014, Smithfield saw sales from its packaged meats business grow just short of 10% to US$7.18bn. Group sales were up 8% at $15.03bn.
Operating income from Smithfield's packaged meats arm grew 21.6% to $459.8m.
Officials at Smithfield had not returned a request for comment at the time of writing.
WH Group is expected to focus on debt reduction at the start of the forecast period, while also continuing to roll out stronger quality and hygiene controls and checks across its network....
Processed meats are meat products that are preserved by salting, smoking, curing, or adding chemical preservatives....
The processed meat category seemed to be the greatest victim when China’s economy slowed in 2014 and 2015, with negative growth overall....
China faced decelerating economic growth at the end of the review period, which resulted in some consumers exercising more caution in their spending....
Ready meals are sold pre-cooked to a certain extent, and serve as easy alternatives to food prepared at home....
- Unilever 2016 investor day - the top takeaways
- The key questions for digital strategists in 2017
- Have food promotions reached tipping point?
- ABF on Brexit, M&A and grocery - interview
- Can manufacturers revitalise shopper experience?
- Nestle unveils process to cut sugar by 40%
- General Mills jobs to go in business revamp
- Japan's Nagatanien buys Chaucer Food Group
- B&G acquires pasta sauce group Victoria Fine Foods
- Tyson sets up US$150m investment fund