U.S. OPERATIONS


Breakfast Meats
Hormel bacon continued to show outstanding growth in volume, dollar sales and market growth despite a category that showed significant decline. Sales of Hormel fully cooked bacon more than doubled. Hormel microwave bacon recorded substantial volume growth. The conversion of Black Label bacon from carton to J-board packaging, allowing the consumer to have a full window view of the product's quality and consistency, contributed to a major volume gain. A new maple flavored Black Label bacon was launched in April, providing a new and popular flavor alternative. Jennie-O Extra Lean bacon achieved double-digit dollar sales increases on top of a significant tonnage volume gain. A new marketing program targeted to foodservice operators is designed to increase sales and distribution of the entire family of Jennie-O breakfast products.

COUNTRY BRAND BACON
A hearty, heavy smoked bacon developed
for discriminating foodservice operators
and their customers.


Little Sizzlers hot & spicy pork sausage with Tabasco brand pepper sauce supported strong volume gains for the line. Effective trade features and displays also were factors in building volume in a category that has been flat.

Bacon is also an important center-of-the-plate product for the foodservice industry because of its ability to add flavor and variety to many menu items. A new Country Brand bacon has a heavy smoked, country flavor and exceptionally long and wide slices for great cooked plate coverage. In only one year, it has captured the same success as Old Smokehouse bacon, a longstanding favorite, and Old Smokehouse Applewood smoked bacon, a newer member of the company's bacon family. Country Brand ham, another recent introduction, has a bold, smoky sweet flavor and is carefully trimmed for an old-fashioned appearance and rich texture. Old Tyme country sausage, available in patties and links, is a new southern-style sausage known for a crumbly texture and savory flavor.