Hormel Foods (HRL) is looking for growth in a challenging food and beverage environment, and it’s expecting the deli business to be a growth driver.
The company has called deli a high-growth area for its retail grocery stores. On Hormel’s fiscal 1Q18 earnings conference call, CEO Jim Snee stated that the company’s deli business was growing four times faster than its total food business despite its own set of challenges (keeping up with changing customer preferences, finding labor, and dealing with the shrink).
More importantly, the deli footprint is also increasing as retailers dedicate more store area to this fast growth avenue. Given that consumers are now looking for quick and quality food options while grocery shopping, deli service is becoming an indispensable part of grocery stores. There are four aspects of a deli: behind the glass, grab and go, in-store restaurants, and prepared foods.
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