Even though Applegate executives sought to reassure people that their products — hot dogs and deli meats prepared without antibiotics or the added nitrites often found in processed meats – wouldn't change under Hormel's ownership, it was a tough sell with some consumers.
For those shoppers, the feeling was, "I really struggle with putting any of my dollars into Hormel's pockets," said Neil Leinwand, Applegate's senior vice president of marketing. "We just reinforce that every time a consumer is buying an Applegate product, they are supporting a farmer, they are supporting a network."
Hormel's experience illustrates the challenge large food manufacturers face when they acquire smaller natural and organic companies. Big food and beverage makers such as Campbell Soup Co (CPB.N), General Mills Inc (GIS.N) and Coca-Cola Co (KO.N), facing sluggish U.S. sales because their processed foods and sugary drinks are increasingly viewed as posing significant health risks, have been buying such brands to tap into a faster growing market and win credibility with consumers.
To read the rest of the story, please go to: Reuters
