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Hormel Foods Welcomes New Executive Vice President Glenn Leitch, Announces Strategic Merger, and Shares Quarterly Report

Hormel Foods Welcomes New Executive Vice President Glenn Leitch, Announces Strategic Merger, and Shares Quarterly Report


AUSTIN, MN
Tuesday, November 21st, 2017

Extra, extra, read all about it! Hormel Foods is hitting more than one headline today. The company’s whirlwind of news announces two new transitions in the executive chain-of-command, a merger of its Specialty Foods segment into its Grocery Products segment, and its quarterly results.

Glenn Leitch, Executive VP of Supply Chain, Hormel FoodsGlenn Leitch will take on a new role leading the company’s global supply chain as Executive Vice President of Supply Chain. After leaving his current position as Vice President and Jennie-O Turkey Store’s President, Leitch will step into his new executive position overseeing the company’s procurement, manufacturing, logistics, research and development, and quality management operations. According to Hormel, this move is an effort to strategically make its supply chain a competitive advantage, as it optimizes its sustainable long-term growth.

James P. Snee, Chairman of the Board, President, and Chief Executive Officer, Hormel Foods “The alignment of our supply chain from procurement to shipment has never been more important,” said Jim Snee, Chairman of the Board, President, and Chief Executive Officer, in a recent press release. “We are focused on optimizing our supply chain in order to create an efficient, enterprise-wide structure that will keep pace with the growing needs of our business. Glenn’s expertise will be invaluable as we find ways to be more strategic, cost-effective, and agile in preparing to meet the needs of today’s changing marketplace.”

With more than 35 years of experience in the food and commodity industries in tow, Leitch’s step into his new role at the company will endeavor to bring its pork procurement and all plant operations for both Refrigerated Foods and Grocery Products into the newly created group.

Hormel headquarters

As Leitch leaves his perch to nest in a higher executive position, so too does Steve Lykken; Lykken will take the helm of Jennie-O Turkey as both the subsidiary's new President and Hormel Foods’ Senior Vice President. To take his new position, Lykken is leaving his previous role at Applegate, one of Hormel’s companies, where he served as President.

While Leitch and Lykken settle into their new roles and the responsibilities at hand, the company also plans to shift another aspect of its business. In an effort to provide a strong branded portfolio of leading products to the evolving food drug, mass, club, and e-commerce retail environments, the company is merging its Specialty Foods segment into its Grocery Products segment, which will continue to be led by Luis Marconi, Group Vice President of Grocery Products.

“I am confident that the consolidation of these two segments will deliver revenue and cost synergies in all aspects of the business while continuing to deliver industry-leading growth,” said Snee in a separate press release. “The Grocery Products segment will be a model for strategic management of iconic brands such as the SPAM® family of products and SKIPPY® peanut butter products, while also nurturing the continued growth of franchises like Wholly Guacamole® dips, Muscle Milk® protein products, and Justin’s® nut butters.”

According to the company's press release, Hormel's Grocery Products segment has delivered consistent, profitable growth with a focus on category-defining legacy brands.

The announcement of the merge in Hormel’s segment make-up and the announcement of the transition in its executive team are accompanied by news of the company's fourth quarter financial report. In a third press release, Snee expresses an expectation that 2018’s fiscal year will show the company’s Refrigerated Foods, Grocery Products, and International as the driving forces, as Jennie-O Foods goes through tumultuous industry times.

Hormel stocks

You can find a more detailed account of the company’s quarterly report online; some of the major points explored in its press release are as follows:

Executive Summary - Fiscal 2017

  • Three of five segments delivered record segment profit 

  • Volume down 8%; Organic volume1 up 2% 

  • Sales of $9.2 billion, down 4%; Organic net sales up 3% 

  • Diluted earnings per share of $1.57, down 4% from 2016 EPS of $1.64 

  • Second most profitable year in the company’s history 

  • Record operating margin of 14.0% 

  • Record cash flow from operations of $1.01 billion, up 2% 


Executive Summary - Fourth Quarter

  • Volume down 10%; Organic volume up 2% 

  • Sales of $2.5 billion, down 5%; Organic net sales up 5% 

  • Diluted EPS of $0.41, down 9% from 2016 EPS of $0.45 

  • Operating margin of 13.2% 

  • Record cash flow from operations of $499 million, up 34%

As we reflect on the company's quarterly report, how will its evolution in executive leadership and segment make-up towards the end of 2017 trickle into success stories heard throughout 2018? Deli Market News will continue to report.

Hormel Foods
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Hormel Foods is a Fortune 500, multinational manufacturer and marketer of consumer-branded food and meat products, many of which are among the best known and trusted in the food industry.

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