Hormel Foods turns to pricing, supply chain revamp to battle meat inflation

Hormel leaned on its multiyear Transform and Modernization initiative to offset some margin pressure in fiscal 2025, which ended Oct. 26, according to Kuehneman. The global branded food company launched the project at the end of fiscal 2023, focusing in part on transforming the supply chain and minimizing portfolio complexity. The initiative has led to increased distribution capacity and optimization of the manufacturing footprint.

In fiscal 2026, Hormel expects the initiative to continue offsetting inflationary pressures and to support margin expansion, interim CEO and Director Jeffrey Ettinger said. However, the company will no longer break out savings from the program separately.

“We believe its financial benefits will be spread in supporting our enhanced marketing programs, offsetting some of the continued inflationary pressure and allowing us to expand margins,” Ettinger said.

Beef costs will remain high and likely will pose a challenge throughout fiscal 2026, while pork input costs are expected to decline from fiscal 2025 but remain above the five-year average, per the call. Meanwhile, turkey supplies are expected to remain constrained through the first half of 2026.