INTERNATIONAL OPERATIONS


Asia-Pacific Regions

SPAM HOT & SPICY
This extra hot version of America's favorite
canned luncheon meat is marketed in
Guam and may be introduced into other
international markets.

HFI's joint venture with Pure Foods Corporation in the Philippines, known as the Purefoods-Hormel Company, ended the year with sales volume up 26 percent. The company enjoys a 51 percent share of the hot dog market, the largest category of processed meats in the Philippines. Introduced during the year were Purefoods Chick'N Tasty hot dogs, an innovative line extension designed to take advantage of the brand's market strength and consumer popularity. Within the shelf-stable, canned meats category, Purefoods-Hormel has captured a 21 percent share with SPAM luncheon meat a particularly strong performer. Purefoods chili was introduced during the year.

In Japan, Okinawa Hormel Ltd., better than 27 percent owned by Hormel Foods, produces and sells a broad range of Hormel processed and canned meat products while three other companies, Tohzai Sangyo Boeki, Inc., Suzusho Ltd., and Snow Brands Foods, import products produced at Hormel Foods facilities in North America. Snow Brands Foods, in its second year working with HFI, recorded strong growth in bringing pork loins and pork tenderloins into mainland Japan while Tohzai Sangyo Boeki, Inc., succeeded in obtaining the Disneyland theme park in Toyko as a customer for Jennie-O turkey drumsticks.

Korean licensee Cheil Jedang increased sales of SPAM luncheon meat by more than 20 percent. For the first time in many years, SPAM luncheon meat will appear on Korean television with a new commercial featuring popular talk show hostess and SPAM luncheon meat devotee, Ms. Kim. Overall sales through HFI's Australian partnership grew more than six percent with the introduction of new 71/2-oz. Stagg chili varieties and SPAM oven roasted turkey.