Austin, Minnesota, USA – May 30, 2025 – Hormel Foods, the maker of Spam, Jennie-O turkey, and Planters nuts, reported in its Q1 2025 earnings call that its protein-heavy portfolio, including turkey, nuts, and Spam, continues to resonate with consumers facing economic pressures. CEO Jim Snee highlighted that these affordable, shelf-stable, and versatile products are driving sales as inflation-hit households seek cost-effective meal solutions.
Snee noted a surge in demand for Spam, particularly its Oven Roasted Turkey variant, which offers a leaner, lower-fat alternative to the classic pork-based product. “Our protein portfolio is well-positioned in an inflation-hit economy,” Snee said, citing Spam’s record-breaking sales for the seventh consecutive year, with a 4.2% volume increase in the quarter ending April 30, 2025. The Turkey Spam, introduced in 2000, has seen renewed interest due to its affordability and long shelf life, appealing to younger consumers and those stocking pantries amid economic uncertainty.
Planters nuts, acquired by Hormel for $3.35 billion in 2021, also performed strongly, with an 8.5% shipment increase driven by flavored offerings like Cinnamon Brown Sugar and Dill Pickle cashews. Snee emphasized that nuts provide a high-protein, convenient snack option, aligning with consumer trends toward quick, nutritious foods. Jennie-O turkey products, despite a 12% sales dip due to avian flu-related supply chain issues, remain a staple for budget-conscious shoppers, with ground turkey and deli meats gaining traction as alternatives to pricier meats.
Economic data supports Hormel’s observations, with U.S. grocery inflation stabilizing but still impacting household budgets, pushing consumers toward value-driven brands. Spam’s versatility—used in dishes from sandwiches to pasta—combined with its low cost (a 12-oz can of Turkey Spam retails for around $3.50) makes it a go-to for strained consumers. However, nutritional concerns linger, as Spam’s high sodium content (790 mg per serving for Turkey Spam) and processed nature draw scrutiny from health advocates. Hormel counters this with lower-sodium and leaner options like Spam Lite and Turkey Spam, though critics argue these still fall short of health-conscious standards.
Posts on X echo Hormel’s narrative, with users like @FoodieTrends noting, “Spam and Planters are saving wallets this year—cheap, tasty, and last forever.” Others, however, question the health trade-offs, with @HealthBit writing, “Turkey Spam might be cheap, but that sodium’s a heartbreaker.” The company’s focus on targeted price increases, up 2% on retail items this quarter, aims to offset rising costs while maintaining affordability.
Hormel’s optimistic outlook projects 2–4% sales growth for fiscal 2025, banking on its “big brands” like Spam and Planters to capture cost-conscious consumers. However, ongoing avian flu challenges and potential consumer pushback against processed foods could temper growth, particularly for Jennie-O. As economic pressures persist, Hormel’s strategy of leaning into affordable, protein-rich staples appears to align with current consumer priorities.
