2012 Progress: The $2B by 2012 Challenge was set to achieve $2 billion in total sales of products created since 2000 by the end of 2012. We successfully met this goal in 2012, and we have set a new goal of $3B by 2016.

32 New Retail Products or
Line Extensions Launched
34 Brands in No. 1 or No. 2
Market-Share Position
302 Products in
Development

To help drive strategic innovation, Jeffrey M. Ettinger, chairman of the board, president and chief executive officer, issued the Billion Dollar Challenge to all Hormel Foods employees. The goal of the challenge was for Hormel Foods to generate $1 billion in sales from new products launched between fiscal year 2000 and fiscal year 2009. The company met the Billion Dollar Challenge in fiscal year 2007, announcing this achievement in the fourth quarter of 2007 and year-end earnings releases.

The $2B by 2012 Challenge was then set to achieve $2 billion in total sales of products created since 2000 by the end of 2012. We are pleased to announce that we successfully met this goal in 2012, and we have set a new goal of $3B by 2016.

As part of our product innovation approach, we have a team dedicated to innovation management. They are responsible for major new product development projects in our company, and we have a system for measuring key indicators to help manage the new product innovation process. Additionally, we have formalized an organization-wide governance system to maintain the necessary checks and balances.

Our consumer response team interacts directly with our customers on a daily basis to address product questions and gain valuable insight regarding consumer preferences. In 2012, the team fielded more than 120,000 contacts via email, toll-free lines and online. These insights help us respond to changing consumer tastes and information needs appropriately.

Our business can be categorized under four product platforms and many of our new products can be grouped under those platforms:

Convenience meals

Hormel® Compleats® microwave meals
Hormel® Compleats®
microwave meals

Value-added fresh meat

Jennie-O Turkey Store® turkey bacon
Jennie-O Turkey Store®
turkey bacon

Value-added protein products

Hormel® Natural Choice® chicken sausage
Hormel® Natural Choice®
chicken sausage

Solution products aimed at the foodservice deli market

Jennie-O Turkey Store® nachos extreme!
Jennie-O Turkey Store®
nachos extreme!