tag:blogger.com,1999:blog-26981669.post5968000902323115379..comments2024-03-23T10:55:30.196-05:00Comments on Cold Fusion Guy: Skippy and SpamJim Peethttp://www.blogger.com/profile/07649414726939918803noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-26981669.post-12201748067367684132013-01-08T14:38:55.359-06:002013-01-08T14:38:55.359-06:001/8/13: Dissecting a deal: Hormel’s purchase of Sk...1/8/13: <a href="http://www.austindailyherald.com/2013/01/04/dissecting-a-deal-hormels-purchase-of-skippy-should-benefit-international-sales-stockholders/" rel="nofollow">Dissecting a deal: Hormel’s purchase of Skippy should benefit international sales, stockholders</a>:<br /><br /><i>[China] may be one of the biggest reasons Hormel pulled the trigger on the Skippy deal, as its consumers are not only just catching on to peanut butter, but Hormel’s larger presence there should help Spam sales in the process.<br /><br />Skippy is the leading peanut butter brand in China and is sold in more than 30 other countries on five continents. Total annual sales are expected to be about $370 million, with nearly $100 million of that outside the U.S., and the majority of that in China, at $30 to $40 million, followed by Canada.<br /><br />“China has been a focus for more than a decade … and [the peanut butter market] is growing rapidly there,” Ettinger said. “I hope it will complement our growing Spam market.”<br /><br />Hormel gets the vast majority of its sales in the U.S., with only about 4 percent of revenue coming from abroad. But the $100 million in international sales will be an immediate 30 percent boost for its international division.<br /><br />“[Peanut butter] is growing at a faster rate internationally than the domestic product,” Ettinger said. “Spam is really our only global franchise for Hormel Foods, so this gives us a second shelf-stable American iconic item that can be sold in multiple countries.”<br /><br /></i>Jim Peethttps://www.blogger.com/profile/07649414726939918803noreply@blogger.comtag:blogger.com,1999:blog-26981669.post-36068848688102015742013-01-07T11:04:59.422-06:002013-01-07T11:04:59.422-06:00Skippy And Spam: Together At Last
For Unilever:
...<a href="http://www.investopedia.com/stock-analysis/2013/skippy-and-spam-together-at-last-hrl-ul-sjm0107.aspx#axzz2HJHbRERG" rel="nofollow">Skippy And Spam: Together At Last </a><br /><br />For Unilever:<br /><br /><i>Skippy's worldwide revenues were just $300 million. Unilever has three brands with revenues of $2 billion or more, twelve brands with $1 billion in revenue, and 10 more knocking on the door. Even if it held 100% market share, Skippy still wouldn't be in its top three brands in terms of revenues. Building billion dollar global brands is Unilever's focus these days and even though food still represents 30% of its $47 billion in annual revenue, much of it comes from Knorr and Hellmann's. Skippy was a rounding error. Financially, it won't miss the revenue or the earnings. What it tells investors is that Unilever's focused on its brands and regions where growth is greatest. The rest must be cast aside. Hormel's gain is also Unilever's gain.</i><br /><br />For Hormel:<br /><br /><i>With the acquisition of Skippy, Hormel gains an additional foothold in a different part of the grocery store</i><br /><br />Jim Peetnoreply@blogger.com