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August 24, 2017

Hormel Foods buys Brazilian meat firm Cidade do Sol

Hormel Foods, the US-based food group, behind meat brands Spam and Jennie O-Turkey Store, has struck a deal to buy Brazilian packaged meats firm Cidade do Sol.

By Dean Best

Hormel Foods, the US-based food group, behind meat brands Spam and Jennie O-Turkey Store, has struck a deal to buy Brazilian packaged meats firm Cidade do Sol.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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The acquisition sees Hormel, which generates the bulk of its revenue in North America, enter South America for the first time.

Hormel has paid US$104m for Cidade do Sol, which the US group described as a “growing, branded, value-added meats company”.

Cidade do Sol owns the Ceratti brand and markets products like sausage and salami to Brazilian retail and foodservice customers.

“The acquisition of the Ceratti brand allows us to enter the fast-growing Brazilian market with a premium brand,” Larry Vorpahl, the president of Hormel’s international business. “The Ceratti brand is poised for continued growth given its strong reputation in the market and outstanding products. This acquisition allows us to establish a full in-country presence with an excellent team of professionals in sales, marketing, operations, logistics and accounting. We are committed to continued international expansion and, with the addition of the Ceratti brand, our global footprint will continue to grow.”

The acquisition of Cidade do Sol came alongside the publication of Hormel’s third-quarter financial results and the company’s move to issue a profit warning amid pressure on raw-material prices.

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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