Strong Brands and Solid Execution Help Narrow-Moat Hormel Withstand Macro Pressures

We believe Hormel’s narrow moat is secured by a strong brand portfolio with demonstrated pricing power, entrenched retail relationships due to the firm’s number-one and -two positions in several categories, and a position as one of the leading providers of protein to the food-service industry, differentiating itself by servicing these clients with its own salesforce. The long-term transition from a commodity protein producer to a branded consumer product firm has served Hormel well, helping to stabilize prices and demand for its strong brands.