Hormel Foods shows record second quarter earnings - KTTC Rochester, Austin, Mason City News, Weather and Sports

Hormel Foods shows record second quarter earnings


AUSTIN, Minn. (KTTC)- There are big reasons to celebrate Wednesday at Hormel Foods. The second quarter earnings for the company are released and big numbers are being seen on their bottom line.

As one store manager put it "If the name 'Hormel' is on the product, the customer is going to buy it."

For a company as prominent as Hormel Foods, big earnings are nothing new. But Wednesday, the numbers tell a significant story.

Second quarter earnings from this year compared to 2011 jumped up 17% to just shy of $128 million. Hormel Foods International sales are up double-digit percentage points as well, production is up on the majority of their products and sales are surpassing $2 billion.

The numbers are there for everyone to analyze, but the next question we have to ask is 'Why are these Hormel products so popular?'

Local stores like Nelsons in Albert Lea carry a variety of Hormel products, and the success of the company is not surprising to those that work with the products first hand.

"Some of it is that it's just down the road, the plant," says Mike Olsen, the assistant meat manager at Nelson's, "and it is a very tender and juicy meat that they put out."

For bigger stores like Hy-Vee in Albert Lea, the name carries a reputation with the consumer.

"They have good quality, and it's just something that the consumers have been purchasing and buying for years and are confident enough with the product," explains Steve Shahan, the Store Operations Manager with Hy-Vee Albert Lea.

The idea of price, convenience and adaptation is what allows Hormel to flourish like they have, and that trend is not likely to change from Shahan's point of view.

"They've come out with so many new and innovative type of items, a way to package it and make it quicker. You know, today everyone is on the go, they want a quick and easy meal."

Even when the company comes out with a down quarter, Hormel stays popular among local consumers, so these numbers can be used to show the staying power for the wide range of Hormel products.

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