Hormel Foods CEO Says This Food Has Hit a Record High for Seven Straight Years

According to the CEO of Hormel Foods, Jim Snee, Spam sales have hit a record for the seventh straight year in a row.

Speaking to CNBC’s Jim Cramer on Thursday, Snee said this year was the seventh consecutive year for the product to hit a record high in sales.

“We’ve had to announce new capacity that we’re going to bring online in 2023 to meet the demand,” Snee said in an interview on CNBC’s “Mad Money.”

“That’s incredible. We’ve had to announce new capacity that we’re going to bring online in 2023 to meet the demand, so Spam is as strong as it’s ever been,” Snee added in the interview.

The Minnesota-based company reported its fourth quarter financial results this week as well as full-year results.

For the fourth quarter the company reported $3.45 billion, which came ahead of the $3.22 billion that Wall Street had been waiting for. Earnings per share at 51 cents also beat the estimtes of 50 cents.

Hormel shares jumped 4.7% Thursday to close at $44.80 as Wall Street digested the report.

For the full year, the company reported net sales of $11.4 billion. This was a jump of 19% compared to fiscal 2020.

It was this past June that Hormel completed its acquisition of the Planters snacking portfolio, and so far, Snee said it’s performing “on the high end of our expectations.”

Snee said he was incredibly pleased with the company’s results, given the challenging operating environment during the pandemic. Snee said Hormel has seen some moderation in the cost of its material inputs in regards to inflation.

But when you think about the labor increases we’ve had, increases in our packaging, other supplies, getting the product shipped … I mean that inflation, it’s real. It’s significant,” Snee said. “It’s being passed along in the form of higher pricing.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.