Hormel Foods sells its Brazil operations to Zanchetta Alimentos as part of a strategy to refocus on high-growth international markets.
Hormel Foods is selling its Brazil business to local producer Zanchetta Alimentos, aiming to simplify its portfolio. The deal includes the Ceratti brand, acquired by Hormel in 2017 through its purchase of Cidade do Sol. Financial terms were not disclosed.
Hormel’s international segment contributed 6% of its $12bn net sales in the year to October, with organic growth of 1% to $709.1m. The division posted an $80.4m loss, down from a $92.1m profit, due to an impairment charge and competitive pressures in Brazil.
The company stated it will focus on markets with stronger long-term growth opportunities, citing recent gains in Spam exports and its China business, which drove a 5% organic sales increase in Q2.