Hormel Bets on Protein Consumption Boom, Says Demand Resilience Offers Unique Growth Opportunities
Hormel Foods President John Ghingo said the company's protein-centric brand portfolio shows unique resilience amid weak consumer spending, achieving organic sales growth for six consecutive quarters. Approximately 70% of Americans want to increase dietary protein intake, and the popularity of GLP-1 drugs has further boosted demand. The company is capitalizing on protein growth opportunities across retail and foodservice channels through strategies such as portable packaging, snack-style products, and clear labeling.
An executive at Hormel Foods said that compared to food companies under pressure from a sharp pullback in consumer spending, the company, known for Spam and Jennie-O turkey products, is seeing "unique" growth opportunities thanks to its "protein-centric" portfolio.
The 135-year-old company, whose product line spans Applegate organic meats, its namesake chili, Planters nuts, and Skippy peanut butter, reaches nearly every eating occasion and shopping channel. Company president John Ghingo noted that its meat and nut brands are natural sources of protein, which has helped Hormel achieve six consecutive quarters of organic sales growth.
"The protein category in particular is showing real resilience," Ghingo said. "Compared to the rest of the food industry, our portfolio is protein-centric, which puts us in a very strong position. This theme is more relevant than ever, and for us, the growth opportunities are more ripe than ever."
According to data from the International Food Information Council, about 70% of Americans say they want more protein in their diets, up from 59% four years ago. The rise of GLP-1 weight-loss drugs has further boosted demand—consumers taking these drugs need more protein to fill nutritional gaps.
Ghingo believes that consumers' seemingly insatiable demand for protein will not fade in the near term. Protein's applications have expanded from simple muscle growth to multiple benefits such as gut health, weight management, anti-aging, and bone health. Additionally, the appeal of protein across age groups, from baby boomers to Gen Z and millennials, supports the long-term nature of protein demand.
This popular nutrient has permeated nearly every shelf in the supermarket—from Pop-Tarts and Kraft Mac & Cheese to Doritos, protein is being added to various processed foods. But Hormel's advantage is that the protein in its products comes from natural sources rather than artificial additions, which can sometimes ruin a product's taste, texture, or give it an "artificial feel."
The company, with annual sales exceeding $12 billion, is actively pushing its high-protein brands to adapt to current snacking and convenience trends. It has launched portable packs for Skippy, Planters, and Columbus meats, while also developing a snacking version of its Hormel Gatherings meat-and-cheese platters, which target entertaining occasions. Additionally, Hormel has made protein claims on product labels clearer and easier to read, helping time-pressed consumers quickly identify them.
Ghingo said that unlike other food companies, Hormel does not limit itself to a specific eating occasion. Its diverse portfolio, spanning snacks, nuts, meats, stews, and chili, is sold in supermarkets, convenience stores, foodservice, and other channels. This allows Hormel to be present wherever and whenever consumers might choose protein.
"Depending on the occasion, trend, and solution, consumers might choose poultry, plant-based protein, or beef," Ghingo observed. "With the diverse protein portfolio we've built over decades, we are in an excellent position to truly capture this growth trend."
Hormel's history dates back to 1891, when George A. Hormel opened a food store in Austin, Minnesota, selling pork, poultry, and dairy products. The Fortune 500 company still has its headquarters there.
Hormel later expanded its food footprint with the launch of Dinty Moore stew and Hormel Chili in 1935, followed by Spam two years later. In recent years, the company has further broadened its portfolio through acquisitions—buying brands such as Skippy, Applegate, and Planters over the past 20 years.
The company's portfolio is currently heavily skewed toward retail, which accounts for more than 60% of its sales. But the foodservice business, which makes up about a third of the company, remains a bright spot. Hormel's foodservice segment has posted sales growth for 11 consecutive quarters—amid a challenging restaurant industry, the company is working with restaurants and other foodservice operators to help them lower costs and improve efficiency.
While focused on developing its existing portfolio, Ghingo said the company is also scouting acquisition targets that "fit our value-creation logic." The most likely acquisition targets include foodservice products that could provide Hormel with more customer solutions, as well as retail categories that are growing quickly or leading trends, such as protein. Hormel is also eyeing international markets, especially the Asia-Pacific region.
"This will be part of our future strategy," he said.