Fifteen percent of sales in 2021 were generated from new products.*
At Hormel Foods, we’re inspired by the quest of our founder George A. Hormel to “Originate. Don’t imitate.”
We continue to focus on understanding the ever-changing needs of our consumers and customers through observations, conversations and ethnography. This work feeds our innovation efforts as we design products that meet the lifestyles, life stages and needs of our global consumer base. As part of our 20 By 30 Challenge, our goal is to achieve 15% of sales from new products each year.* We are proud to report we achieved this goal in 2021.
Our innovation management team supports our product innovation efforts and is responsible for major new product development projects in our company. We have a system for measuring key indicators to help manage the new product innovation process and a formalized companywide governance system to maintain the necessary checks and balances of our product innovation process. In addition, we hold an annual summit for team members involved in innovation and have an Innovation Steering Committee that meets quarterly to review the company’s innovation progress.
We established our internal Innovation Best of the Best competition to recognize teams and highlight our focus on successful innovation. In 2021, our Wholly® convenience avocado product team was named our Innovation Best of the Best champion for creating a no added preservatives line of diced and smashed avocados in a ready-to-use format.
Our consumer and shopper insights team, along with our dedicated cultural anthropologist, regularly engage with our consumers and customers to ensure our brands and products remain current and relevant. In addition, our consumer engagement team is dedicated to maintaining strong relationships with our consumers. In 2021, the consumer engagement team fielded more than 89,000 consumer contacts. Through these efforts, we keep the cultural reference of food front and center to all decisions.
New Options and Recognition
In 2021, we launched over 400 retail and foodservice items. These items included the Hormel™ pretzel bites and cheese tray, Hormel® Black Label® classic country style bacon and Applegate Naturals® Do Good Dog™ hot dog. Our Hormel™ pretzel bites and cheese tray was selected as a winner of the 2021 Food Network Magazine’s Supermarket Awards. In addition, the following products were recognized with Progressive Grocer Editors’ Picks awards:
- Herdez® avocado hot sauce;
- Hormel® Black Label® thick cut ranch bacon;
- Hormel™ Black Label™ Breakfast Combos™ products;
- Hormel™ pretzel bites and cheese tray;
- Justin’s® refrigerated protein bars; and
- SKIPPY® peanut butter squeeze pouch.
*Based on net sales for new items launched within the previous three years and the projected sales for items scheduled to launch in the next two years, divided by total reported sales for the year.