June 19, 2024

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Inflation-hit consumers find help in SPAM says Hormel Foods CEO

2 min read

Forget cereal for dinner, SPAM is here to save the day for customers looking to save cash in an inflation-hit economy.

The CEO of Hormel Foods, the owner of the tinned meat brand, was optimistic about the future having posted strong Q1 2024 earnings results which sent share prices spiking 15%.

Jim Snee, who also acts as Hormel’s president and chairman, later told CNBC he expects strong results in the coming year courtesy of the business’s “protein portfolio” spanning meat-free alternatives and affordable options.

And in an economy where consumers are facing down ‘shrinkflation’ and spiraling food costs, this affordable option may prove all the more important.

“The SPAM brand continues to resonate with consumers,” Snee told Jim Cramer in an interview Thursday. “[SPAM] is a great, affordable source of protein that is meeting all of the consumer’s needs.”

SPAM, which became something of a delicacy during the Second World War and currently retails for around $3.50, was noted multiple times during Hornel’s earnings call this week as an area with strong consumer loyalty and space for growth in the coming months.

On the call Snee noted consumer analysts Circana had highlighted “several positives for the quarter as we gained or maintained share across many of our products in key categories, including the SPAM family of products.”

He added: “We expect net sales increases in our International business to be driven by the branded export business led by refrigerated items, Skippy and SPAM and the retail and foodservice channels in China.”

Rising food prices

Snee, who joined the business in 1989, isn’t the only food boss pushing his product as a lower-cost alternative for families looking to tighten the purse strings. Food is getting more expensive month-to-month, and is expected to tick higher.

The CPI for all food items increased 0.6% from December 2023 to January 2024 and was 1.2% higher than January…

Eleanor Pringle

2024-03-01 07:20:58

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