Hormel Foods and Cargill have dissolved their joint venture partnership for the Precept Foods brand.
The joint venture was formed in 2002 and saw Precept Foods market fresh meat products under Hormel’s Always Tender brand.
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In an email to just-food, a spokesperson for Hormel said sales of US$115m were associated with the business but insisted the company did “not anticipate a material impact to segment profit as a result of this change.”
A spokesperson for Cargill added: “Our relationship has evolved to a co-packing arrangement instead of a joint venture. It was mutually agreed upon by both companies that this new arrangement would be best for the long term. Cargill continues to supply case ready products to Hormel Foods and its customers through this new arrangement”.
Neither party commented on the impact the decision would have on production of the brand.
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