Solid Execution Is Helping Narrow-Moat Hormel Navigate a Challenging Environment

We believe Hormel’s narrow moat is secured by a strong portfolio of brands 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 proteins 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 company has served Hormel well, helping to stabilize prices and demand for its strong brands.