Dive Brief:
- Hormel Foods is selling its whole-bird turkey business to Life-Science Innovations for an undisclosed amount, though it will retain the Jennie-O brand.
- LSI is acquiring Hormel's production facility and feed mill in Minnesota, plus associated transportation assets. It will also assume farmer supply contracts and provide co-manufacturing services to Hormel through the end of fiscal 2026.
- The deal, set to close at the end of Hormel's second quarter, includes assets associated with hen turkeys, the birds used during Thanksgiving. President John Ghingo said the sale is "an important next step in our evolution" to focus its turkey portfolio around value-added offerings such as lunch meats.
Dive Insight:
Hormel is paring down its presence in turkey after contending with headwinds including lower demand and bird flu, which killed tens of thousands of birds since 2022 and raised costs for meat producers.
Whole turkey prices have continued to rise as bird flu limits production. But because of lower demand, many companies have held off on passing along those costs to consumers. The price of Thanksgiving turkeys decreased in 2025 for consumers due to discounting, with more shoppers opting for chicken or other proteins as the star of their holiday meals.
By leaving the whole turkey business, Hormel can focus on growing profitable areas within the segment, including in foodservice and value-added. Hormel will retain its tom turkeys, the birds used in products like lean ground turkey, turkey burgers or deli meat.
Ghingo noted Jennie-O is the No. 1 brand in retail for ground turkey, and the company will continue to pursue opportunities in the space as protein demand grows.
"We are exiting the part of the business that is more commodity-oriented, that is more volatile, that is less connected to consumer demand and trends," Ginkgo told analysts at the Consumer Analyst Group of New York Conference this week.
Other meat producers have also sold off agricultural assets to reduce exposure to volatile commodity markets. Pork giant Smithfield has sold off hogs and renegotiated contracts with farmers as it also focuses on lunch meats and value-added products.
