Expanding Successful Brand

	HORMEL SELECT CHILI Hormel Foods is bringing its retail chili expertise to the foodservice industry. Available in with beans and no beans varieties.

To keep product lines fresh and responsive to consumer tastes and lifestyles, several new additions were made to well-known existing brands. SPAM oven roasted turkey moves the leading brand of luncheon meat into new territory. The product, made with 100 percent lean white turkey meat, is targeted at younger, health-conscious consumers. SPAM hot & spicy with Tabasco brand pepper sauce is in introductory test markets following initial consumer research studies showing this bold and uniquely flavored alternative attracts a younger demographic audience to the canned luncheon meat category. The development of this promising line extension follows the successful launch of Hormel chili with beans, Hormel chili no beans. Little Sizzlers pork sausage and Hormel hot & spicy pepperoni, all flavored with Tabasco brand pepper sauce.
Hormel pepperoni, unquestionably one of the company's best known and most successful product lines, marked its seventh consecutive year of growth. Four new additions - Hormel thick sliced pepperoni, Hormel diced pepperoni, Hormel bite-size pepperoni and Hormel hot & spicy pepperoni - contributed to both volume and dollar category share increases for the number one market leader. The expanded product offerings promote pepperoni as a "kitchen buffet" or snack food alternative to sit-down meals.

The extraordinary growth and future potential of Always Tender fresh pork prompted the introduction at midyear of Always Tender flavored beef The line includes peppercorn, teriyaki, Italian and grill flavored beef filets and raises to 19 the number of flavored pork and beef products available under the Always Tender brand.

JENNIE-O CAJUN-FRIED SPLIT TURKEY BREAST Designed for the service deli and foodservice customer wishing to add a popular consumer favorite to their product lineup.

Four years after its initial retail debut, double-digit sales volume increases were recorded for the family of Always Tender fresh pork. Always Tender flavored pork and Always Tender Consumer Ready fresh pork. New distribution across the entire United States and increased brand awareness developed through comprehensive consumer advertising spurred these strong results.

Buoyed by this overwhelming success in retail grocery stores, the Always Tender brand was introduced to the foodservice trade, including fine dining and casual restaurants, with very positive results. The range of menu items - boneless loins, boneless tenderloins, portion-controlled boneless chops, fresh ham roasts and Boston butt roasts - impressed chefs who found the new, enhanced product line outperformed conventional pork.

	PATAK'S AUTHENTIC ETHNIC FOODS The spicy ginger & garlic, mild curry and tangy coriander & lemon marinades offer an ideal entry point to Indian cuisine.

An aggressive product development program for the Jennie-O brand resulted in the introduction of several new value-added items. Jennie-O Slice n' Serve turkey breast, available in smoked and oven roasted varieties, offers consumers the convenience of a fully cooked, lean turkey product ideal for slicing into sandwiches. The turkey variety pack of luncheon meats includes sliced Jennie-O turkey ham, turkey bologna, turkey cotto salami and smoked white turkey in a convenient pegboard package. Jennie-O seasoned turkey burgers, introduced in August, combine lean, tender ground turkey meat with savory spices for an extra pleasing taste sensation. Jennie-O turkey franks gained more than four share points in fiscal 2000 to become the market leader in that category-Jennie-O pan roasted turkey breast, Jennie-O turkey bacon and Jennie-O turkey burgers also scored solid volume gains.

Kid's Kitchen shelf-stable entrees continued to show consistent growth in dollar sales and volume, benefiting from increased distribution, greater advertising and promotion and category consolidation. A Kid's Kitchen cheezy mac 'n franks increased to 13 the number of microwaveable items now offered through this very popular line. The development of a new "kid friendly" all-plastic cup, offering an easy-open benefit as well as improved

	HORMEL GOURMET HAMS Rosemary, mesquite smoked, citrus and peppered flavored hams for the service, deli.

product appearance and freshness, is expected to add to future sales growth. Dinty Moore American Classics entrees benefited from two new items - au gratin potatoes with Cure 81 ham and macaroni & cheese with Cure 81 ham.

Hormel chunk meats - ham, turkey and chicken - moved into the number one unit share position in its category. Three seasoned chunk breast of chicken varieties - lemon pepper, tomato basil with garlic and Southwest - were moved into test markets late in the fiscal year. Each product is 98 percent fat free, an appealing factor for today's health-conscious consumer, and is marinated in a seasoned broth before cooking for enhanced flavor.

With a five percent sales increase, Hormel real bacon bits and Hormel real bacon pieces became the bacon topping category leader in unit and dollar sales. As a complement to the line, Hormel crispy real bacon chips were created, using new, patent pending technology developed by the company's research and development team. This innovative product assures consumers of receiving an improved crispy texture and real bacon quality that remains crunchy even when mixed into a salad versus that offered by imitation soy products.