Hormel Foods Corp. is folding its Specialty Foods segment into its Grocery Products segment.
The move is designed to deliver “a strong branded portfolio of leading products to the evolving retail environment of food, drug, mass, club and e-commerce,” according to Hormel. Wholly Guacamole dips and Hormel Gathering party trays are among the Hormel Specialty products sold in instore delis.
"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," says Jim Snee, Hormel’s chairman of the board, president and CEO.
Luis Marconi, Hormel’s group vice president for Grocery Products, will lead the new combined segment.
The news comes less than a month after Hormel announced it was buying Hayward, California-based deli meat specialist Columbus Manufacturing Inc. for $850 million.