Consumer Resilience and Protein Demand (with Katie Graffield, Romain Bostick)

Consumers are feeling inflation strain but food is resilient, especially protein. Hormel posted 6th consecutive quarter of net sales growth and profit growth across all segments. They are shaping the portfolio away from volatile commodity businesses like whole bird turkey toward consumer-focused brands.

Yields

inferred

RUT

Oil

Metals

USD

Hormel Foods 2.5
Consumer Staples
John Gingo 7.0

Consumer Resilience and Protein Demand (with Katie Graffield, Romain Bostick)

ndx

No direct market view; focus is on consumer staples and protein demand, not tech.

Asks about balancing commodity costs with consumer demand.

Katie Graffield
John Gingo

Consumers are feeling cumulative inflation strain, but food is resilient, especially protein. Hormel posted 6th consecutive quarter of net sales growth and profit growth across all three segments.

Gas prices going up has added to strain. They focus on solutions for time, affordability, nutrition.
Asks about trade-down trends between premium and affordable brands.

Katie Graffield
John Gingo

Seeing demand for both affordable center-store brands and premium brands like Applegate. Poultry is a growth area.

Consumers are looking for affordable protein but willing to pay for premium if value is right.
Asks about balance between food service and retail growth.

Romain Bostick
John Gingo

Food service has been a positive growth story for multiple quarters. Retail made strong progress but has work to do on margins and portfolio shaping.

They are exiting the whole bird turkey business as it is a volatile commodity business not aligned with consumer demand.
Asks about consumer receptivity to pricing going forward.

Romain Bostick
John Gingo

They take pricing when necessary but are driving efficiency to avoid it. Transformation program and reduced SG&A spending help limit pricing.

When they have to price, they innovate and build brands to deliver value.

SignalTube

markets at a glance