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.
Line Extensions Launched
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: