Chris Downing

Chris Downing asked for a comparison of the whole bird business divestiture to the Wholestone Farms transition on the pork side in 2018, highlighting similarities and differences. He also sought a reminder of the percentage of the legacy Jennie-O portfolio that whole birds represented, recalling it was around 20% at last disclosure.

Answer

Interim CEO Jeffrey M. Ettinger differentiated the turkey complex from the pork complex, noting Hormel's smaller position in pork and the retention of substantial tom turkey assets for Jennie-O's value-added products. He reiterated that the whole bird business was deemed less strategic and more volatile. Regarding the percentage of whole birds in the Jennie-O portfolio, he suggested following up for precise figures but indicated the $200-275 million sales range provides a ballpark. Interim CFO Paul Kuehneman clarified that bone-in breast from hens is a finished good, distinct from value-added tom turkey breast meat.

Chris Downing asked two questions regarding the whole bird business divestiture: its comparison to the Wholestone Farms transition in 2018 on the pork side, and the historical percentage of whole birds within the legacy Jennie-O portfolio.

Answer

Interim CEO Jeffrey M. Ettinger differentiated the turkey complex from the pork complex, highlighting Jennie-O's long-standing position and retained tom assets, while confirming the whole bird business was less strategic and more volatile. He noted that the exact percentage of whole birds in the Jennie-O portfolio could be followed up on, but the analyst's estimate was in the ballpark. Interim CFO Paul Kuehneman clarified that bone-in breast from hens is a finished good, distinct from breast meat for value-added products.