COMMENTARY: Hormel and the other kind of Spam

Issue: Hormel has trouble expanding into upscale food
Commentary by: David
Today, Steven Gray at the Wall Street Journal details Hormel’s difficulty expanding its brand into fast-growing niches including healthy and ethnic pre-packaged food. In spite of a solid product and innovative technology, (using high-pressure pasturization instead of preservatives to keep food bacteria free by literally squeezing the bacteria to death) Hormel has struggled to overcome its longtime association with Spam, the difficult-to-characterize almost-meat which is still popular in certain regions and among certain populations in the United States. Adding to Hormel’s troubles is the worry that premium food offerings will alienate core Spam consumers.
It is understandable that Hormel is seeking new markets and new consumers. There may be great reasons for a food manufacturer to diversify and serve more than a narrow slice of the consumers in the grocery store. There may even be operating efficiencies and negotiating advantages to selling […]

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