Hormel is spending $850 million to buy Columbus Craft Meats

The Spam-maker is dropping $850 million to scoop up Columbus Craft Meats.
Author:
Updated:
Original:

The key to millennial shoppers' hearts? Craft salami.

At least that's part of the thinking behind an expensive new move by Hormel, which on Tuesday announced it will buy Columbus Craft Meats for $850 million.

Why?

Well for one, it beefs up (get it? har har har) Hormel's deli presence. Paired with Hormel's Applegate brand, the Austin-based company now has the turkeys and hams and chickens, plus salamis and other charcuterie. 

In addition, Columbus Craft Meats is targeted at millennials, said CEO Joe Ennen in Tuesday's announcement. 

That's become a pattern recently for Hormel, which has been adding brands and products that fit the "all-natural" and "health-conscious" labels young adult shoppers are drawn to.

Columbus meats have no artificial colors, flavors or trans fats, and everything except the honey mustard spread is gluten-free. The company is also working to ensure all the animals it gets meat from haven't been treated with antibiotics.

So yes, Hormel has the shelf staple Skippy peanut butter – but it also owns Justin's organic nut butter.

The processed (though pretty delish, based on our taste test) Spam isn't going anywhere – but the purchase of the all-natural, organic Applegate brand in 2015 gave Hormel access to a totally new type of customer.

Hormel actually owns 54 brands you have probably eaten, or at least seen in the store. Some have the Hormel name attached, others don't.

Wholly Guacamole? That's Hormel's.

Muscle Milk? Also Hormel's.

Del Fuerte, Valley Fresh, Cafe H, Di Lusso, Jennie-O ... all owned by Hormel.

And now you can add Columbus to the list.

Here's a telling explanation of the purchase from the Chicago Tribune's Greg Trotter.

"The deal reflects Big Food’s insatiable appetite for smaller, more premium food companies these days. Simply put, it’s easier to buy products that are marketed as natural or premium or authentic — all popular industry buzzwords these days — than it is to create them."

Next Up

mcdonald's

Burnsville PD: Customer sprayed chemical irritant at McDonald's workers

The incident happened in Burnsville over the weekend.

coronavirus, coronavirus test, covid-19

MN launches campaign to get students tested for COVID every 2 weeks

The state launched a youth testing campaign on Wednesday as part of its effort to control the spread of COVID.

jacob frey

Preparations for Derek Chauvin trial underway in Minneapolis

People will see "fortification" efforts and National Guard soldiers.

Willmar Police Department

Road rage leads to brawl at Willmar intersection, police say

The participants appeared to know each other, police said.

hazelewood burgers

3 Minnesota restaurants make it on 50 best burgers in America list

A travel website praised the restaurants' burgers in a recently released list.

Fire, firefighters

Firefighter critical after gun discharges during blaze, hitting him

The 35-year-old Cornell firefighter is hospitalized in critical condition

evelyn adams

After 2 years, sheriff's office seeks new leads in unsolved deadly home invasion

"The sheriff’s office is close to knowing exactly what occurred that night but needs your help," the sheriff's office said.

joseph heroff

Man charged in chase that ended with police fatally shooting suspect

The suspect who was shot has also been identified.

Royce Lewis

Twins' Royce Lewis tears his ACL, will undergo surgery

A huge blow for the former No. 1 draft pick.

Screen Shot 2021-01-22 at 9.08.16 PM

Police release cause of death for daughter of MN Supreme Court Justice and Allina CEO

Olivia Chutich died from a combination of excessive drinking and hypothermia.

science-museum-of-minnesota

Science Museum of Minnesota to reopen this weekend

The museum will be open on weekends with limited capacity and other safety precautions.

Related

Hormel's newest health-conscious play: Meat, cheese, dark chocolate

Hormel's been trending toward healthy-sounding products recently.

Muscle Milk

Hormel sells company behind Muscle Milk to PepsiCo for $465M

The Minnesota company is ending its foray into the protein powder and drinks market.

peanut-624601_1280

Minnesota's Hormel Foods buys Planters from Kraft Heinz in $3.35B deal

The Austin-based company adds another brand to its collection.

Screen Shot 2020-04-23 at 1.41.12 PM

Hormel Foods announces more bonuses for its plant workers

The Austin-based food giant already paid out bonuses in April.