G4 - 1
Statement from the most senior decision-maker of the organization.
G4 - 2
Description of key impacts, risks and opportunities.
G4 - 13
Significant changes during the reporting period regarding size, structure or ownership, or supply chain.
Welcome, and thank you for visiting the 2015 Hormel Foods Corporate Responsibility Report. As we celebrate the 125th anniversary of the company this year, we are excited to share our 10th annual report and the progress we have made as a leading corporate citizen in our industry.
Our food journey is how we produce food responsibly for customers and consumers around the world through five focus areas: the environment, animal welfare, our products, people and communities. We continue to make significant strides, and this past year was no exception. To build upon the efforts of our Corporate Responsibility Council, we established an executive Corporate Responsibility Steering Committee. In addition, we formally added oversight of sustainability, environmental issues and corporate social responsibility activities to the authority of the Governance Committee of our Board of Directors.
After surpassing our 2020 solid waste goal last year, we continued to implement projects to achieve additional reductions. In 2015 alone, our operations implemented projects that reduced the amount of solid waste sent to landfills by 1,200 tons. We also made notable progress toward our other 2020 goals to reduce water, energy, greenhouse gas emissions and packaging.
Each year, Hormel Foods facilitates an Environmental Sustainability Best of the Best competition that recognizes internal teams of employees who identify and implement ways to help us operate more efficiently. In 2015, there were 58 entries generated across all Hormel Foods business segments, and our Farmer John (Vernon, Calif.) team was chosen as the champion for their energy reduction initiatives. This team implemented projects that resulted in a savings of over 1.75 million kWh of electricity and 3,000 MMBtu of natural gas.
Nutrition and Wellness
In addition to our sodium reduction efforts, we implemented a clean label initiative to simplify the ingredient statements of many of our retail products through the removal or replacement of ingredients, while still delivering great-tasting items that consumers expect. Clean label projects that were completed in 2015 included: Valley Fresh® chicken and turkey, Hormel® Compleats® microwaveable meals and Hormel® Always Tender® meats.
We also partnered with the Cancer Nutrition Consortium to develop a line of food and beverage products designed to support the unique nutrition needs of patients recovering from cancer and undergoing chemotherapy or radiation therapy. In 2015, we launched Hormel Vital Cuisine™ high-protein shakes and whey powders and made them available directly to consumers for home delivery. We will be launching a line of Hormel Vital Cuisine™ meals in 2016.
We continue to innovate and adapt our offerings to meet the constantly evolving needs of consumers. Delivering foods that fit today’s busy lifestyles, products focused on nutritious and holistic attributes, and items with new and adventurous flavors from many cultures around the globe will drive our future growth.
In 2015, we added several new products to our portfolio such as: Hormel® Black Label® premium bacon, Muscle Milk Pro Series® products and SKIPPY® P.B. bites. We also acquired Applegate Farms, LLC, which has allowed us to offer a new line of products to meet the growing demand for natural and organic foods.
Giving back is an important value of our company. We continue to focus our philanthropic efforts on hunger relief, education and supporting the local communities where we operate, and in 2015 we contributed more than $7.7 million to support these initiatives.
For example, we donated $400,000 to local hunger relief organizations in 40 communities where we have manufacturing facilities. We also continued our donations of SPAMMY®, a shelf-stable poultry product fortified with vitamins and minerals that is distributed to malnourished children in Guatemala. In 2015, we donated 2.4 million cans of SPAMMY® through our partnership with Food for the Poor and Caritas Arquidiocesana. Additionally, the fortified poultry-based spread was made available for purchase under Title I for USDA feeding programs and Title II for USAID programs, which will help us expand our reach to help malnourished people.
We are honored to be recognized for our work in these important areas, such as being named one of the 100 Best Corporate Citizens by Corporate Responsibility Magazine, receiving Progressive Grocer Editors’ Picks accolades for eight of our product innovations, and being named a finalist in the U.S. Chamber of Commerce Foundation’s Corporate Citizenship Awards for Project SPAMMY®.
I encourage you to read more about our journey within this online report and fully downloadable PDF. Please also visit the corporate responsibility section of www.hormelfoods.com for additional information. As always, we welcome any feedback you may have on our report or our efforts to help us continue to improve and expand upon our efforts.
Jeffrey M. Ettinger
Chairman of the Board and
Chief Executive Officer