Hormel Foods further optimizes manufacturing footprint

Group 1 - The global branded food company Hormel launched its T&M initiative at the end of fiscal 2023, aiming for at least $250 million in annualized operating income growth over three years [3] - By the end of fiscal year 2025, Hormel expects to achieve $100 million to $150 million in incremental benefits from the T&M initiative, as stated by EVP and CFO Jacinth Smiley [4] - The T&M initiative includes opening a distribution facility in Memphis, Tennessee, to enhance inventory flows and distribution capacity [4] Group 2 - Hormel implemented the Hormel Production System to standardize operations across manufacturing facilities and introduced new procurement and productivity programs to achieve further savings in logistics, warehousing, and supplies [5] - The company established a data and analytics office to facilitate access to technology and data, supporting the T&M initiative [5] - Hormel has made leadership changes in its supply chain, promoting Steve Lykken to group VP of supply chain, followed by Kevin Myers as interim group VP after Lykken's departure [6] Group 3 - Hormel is discontinuing bacon production at its Tucker, Georgia plant to optimize its manufacturing footprint, moving production to other facilities [7] - The discontinuation of the bacon line is part of approximately 90 projects executed in Q3 as part of Hormel's multiyear transformation and modernization initiative [7]