View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
November 22, 2016

US meat group Smithfield buys clutch of assets from Hormel Foods

US meat group Smithfield Foods is to acquire Hormel Foods' Clougherty Packing, the parent company of Farmer John and Saag's Specialty Meats, as well as two processing facilities and three farms.

US meat group Smithfield Foods is to acquire Hormel Foods’ Clougherty Packing, the parent company of Farmer John and Saag’s Specialty Meats, as well as two processing facilities and three farms.

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.

Smithfield, which is owned by China-based meat processor the WH Group, said yesterday (21 November) the deal, struck for for US$145m in cash, subject to working capital adjustments at closing, is expected to be completed within 30 days pending closing conditions and regulatory approval.

Smithfield said the acquisition of southern California-based Clougherty, a producer and processor of branded pork products, includes Hormel subsidiary PFFJ’s farm operations in California, Arizona and Wyoming. Altogether, the operations will add 2,000 employees, growing Smithfield’s total workforce to 52,000, the company said.

“Founded in 1931, Farmer John is the number one bacon and sausage brand in southern California,” Smithfield said. “Saag’s Specialty Meats is a premium brand of deli meat and specialty sausage made without any artificial flavours, colours, fillers, extenders or MSG.”

Smithfield president and CEO Kenneth Sullivan added: “By folding Farmer John into our operations, we are better positioned to take advantage of our long-term strategic growth goals, which includes an increasingly diversified customer and consumer base and greater supply chain efficiency.”

Hormel president and CEO Jim Snee said the sale “allows for the integration of the pork processing facility at Farmer John with the majority of the live production operations which supply the facility”, which are currently owned by Smithfield. “We will work together to ensure a smooth transition for our employees and customers,” Snee said.

In September, Hormel named James Splinter, vice-president of the group’s grocery products business, as vice-president of corporate strategy. In his new role, Splinter will have responsibility for leading the company’s “strategic growth areas”, Hormel said. The company identified these as corporate development and strategy, consumer insights and building the company’s digital and e-commerce capabilities. 

WH Group said in September that it saw sales and profits rise in the first half of its financial year, with earnings from its fresh pork arm rising rapidly.

Related Companies

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.

Topics in this article: , , ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food