The Agricultural Forum 2001 Extreme Demands Extraordinary Products: A New Agriculture for a New Mark

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The Agricultural Forum 2001Extreme Demands -
Extraordinary ProductsA New Agriculture for a
New Marketplace?

• Iowa State University
• March 2, 2001

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Importance of Selected Factors in Food Purchasing
Decisions
Source GMA Opinion 98 Consumers Speak Out on
National Brands, Eating Source Habits and Food
Irradiation, May 1998
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We still pay lip service to health.
Effort to Avoid Fat/Cholesterol
Source 1997 Gallup Study of Changing Food Prep.
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But were proclaiming less interest in
health-related eating issues.
Source Gallup, NPD
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And were more overweight than ever.

• Percent of adults considered overweight has
  increased from 24 in 1960-62 to 35 in 1992-94.

Source CDC National Center for Health
Statistics.
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Interested in More Information About Nutrition
71
68
69
67
69
66
65
58
57
53
Source The 1997 Gallup Study of Changing Food
Preparation and Eating Habits
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Concern About AdditivesHave you been concerned
about any specific additives in the food you or
your family eat?
Source The 1999 Gallup Study of Changing Food
Preparation and Eating Habits
8
Time Pressures on Eating HabitsIt is difficult
to find time to prepare meals.
Agree
Source The 1999 Gallup Study of Changing Food
Preparation and Eating Habits
9
Incidence of Purchasing Take-Out Food in Past 30
Days
Source The 1999 Gallup Study of Changing Food
Preparation and Eating Habits
10
Popular Ethnic FoodsWhich ethnic dishes are
popular in your household?
Source The 1999 Gallup Study of Changing Food
Preparation and Eating Habits
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Annual Meals Purchased at a Restaurant But Eaten
in the Car
Annual Meals (including Snacks) Purchased at
Commercial Restaurants per Person and Consumed in
the Car
Source NPD Group
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Foodservice vs. Retail
Percent of dollars
Source TECHNOMIC
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U.S. Total Per Capita Meat Consumption of Beef,
Pork and Poultry
Lb. Retail Weight
222.0
152.3
Source USDA
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Recognition in the Industry
New Products Company of the Year Prepared Foods
Magazine
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Recognition in the Industry
Company of the Decade Meat Marketing
Technology Magazine
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Hormel Foods Chili
New Products
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SPAM Luncheon Meat
New Products
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HORMEL Fully Cooked

• Original 4 items launched November 1999
• All 4 listed among top 25 SKUs of the category

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HORMEL Fully Cooked
An Authentic Barbeque Experience

• 4 new items launched November 2000

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HORMEL ALWAYS TENDER
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HORMEL ALWAYS TENDER
Product Profile

• Superior tenderness
• Extended shelf life
• Enhanced moisture retention
• Improved color uniformity
• Pork you can cut with a fork.

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HORMEL ALWAYS TENDER
Flavored Pork

• Peppercorn
• Teriyaki
• Lemon Garlic
• Mesquite Barbecue
• Honey Mustard
• Apple Cinnamon
• Southwest
• Mojo Criollo
• Onion and Garlic
• Roast Flavor
• Salsa

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HORMEL ALWAYS TENDER
New Beef Items
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New Foodservice Products
Bold Flavors
Less Labor
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Less Labor/Bold Flavors
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Authentic Mexican Sauces and Foods
Herdez family of products
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CARAPELLI Olive Oil

• Contemporary and on-trend
• Large growing category
• Offers health benefits

The passion comes pouring out.
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Summary

• Taste rules
• Health - not so important
• Time
• Ethnic
• Grazing
• Lifestyles