Dive Brief:
- Hormel Foods said CEO James Snee is retiring at the end of the company’s 2025 fiscal year after nearly four decades with the Spam and Jennie-O manufacturer.
- The board has formed a search committee to find Snee’s successor. Internal and external candidates are being considered. Once his replacement is found, Snee will serve as a strategic advisor to the board through the end of fiscal year 2025 and for 18 months afterward.
- Snee’s retirement comes as the company battles headwinds in turkey, and similar to other food manufacturers, faces lower demand for its products as consumers pull back on spending.
Dive Insight:
Snee, who took over the top executive role at Hormel in 2016, has overseen significant growth in the company’s portfolio. Net sales have surged during his tenure, rising from $9.2 billion in Hormel’s 2017 fiscal year to $12 billion last year. He also led the company through the pandemic, supply chain disruptions and a prolonged period of volatility in its Jennie-O turkey business due to the spread of the bird flu virus.
But it was his 2021 purchase of the Planters snack nut portfolio for $3.35 billion from Kraft Heinz, the largest deal in the Minnesota company’s 134-year history, that was arguably Snee’s signature move as CEO. The acquisition, which also included Cheez Balls and Corn Nuts, instantly made Planters the biggest brand in Hormel’s portfolio and solidified its presence in the popular snacking category.
Whoever Hormel’s board selects to take over for Snee will inherit a company with a valuable staple of household brands ranging from Skippy peanut butter and Planters to Columbus Craft Meats and Spam. Hormel is also firmly centered in two trends popular with today’s consumers, snacking and protein.
But the new leader will face challenges, too, including changing consumer preferences, a slowdown in purchases by inflation-weary consumers and the rising popularly of GLP-1 medications.
“As we begin this transition, I’m confident in the bright future that lies ahead for Hormel Foods,” Snee said in a statement.
After a prolonged period of stability, the food space has seen a series of executive changes during the last two months.
Hershey announced last week that CEO Michele Buck will step down next year after roughly two decades at the Reese’s maker, including the last eight as CEO. And soup maker The Campbell’s Company announced in December that Mick Beekhuizen will succeed Mark Clouse next month. Clouse is resigning to join the NFL’s Washington Commanders as the team’s president.