Hormel Foods Corporation
) recently announced new environmental goals based on key
sustainability metrics and improvements across last year goals.
These are the company's second set of environmental goals, which
encompasses new packaging, water, solid waste, air and energy
issues effective fiscal 2012.
With respect to the first set of five-year goals ended fiscal
2011, the company surpassed the water reduction, packaging and
solid waste minimization program -- reducing packaging by a total
of 21.8 million pounds and beating the water reduction goal by 15%.
Progress on the first set of five-year goals now throws a greater
challenge and a fresher look at the long established policies and
The new environmental goals will now be measured against base
year 2011 at the company-owned and international manufacturing
locations. The set of goals achieved by Hormel, alongside the new
targets across the strategic environmental metrics, are listed
According to the first set of goals, the company reduced
packaging by an average of 4.4 million pounds per year and a total
of 21.8 million pounds by 2011. In times ahead, Hormel hopes to
reduce product packaging by 25 million pounds by 2020.
By 2011, the company reduced water consumption by 15% compared
to 2006 levels and reduced water usage by 11% in 2010 and 15% in
2011. They now look forward to reducing 10% of water use by
Turning toward solid waste, Hormel's recycling rate was 46% at
the end of fiscal year 2011 compared with 41% at the end of 2010.
The company reduced solid waste to landfills by 29% in 2011
compared to 2006 levels. Presently, the new target calls for 10%
reduction of solid waste sent to landfill by 2020.
Air emissions targets during the first set of environmental
goals for 2011
decreased greenhouse gas emissions by 5% compared to fiscal year
2009; setting new goals to reduce 10% of greenhouse gas emissions
indirect energy consumption increase by 1% in fiscal year 2011
compared to 2006 levels. Direct energy consumption decreased by 1%
compared to 2006 levels, setting a new goal to reduce 10% of
non-renewable energy use by 2020.
Hormel Foods also implemented several significant capital
projects targeted to reduce energy intensity. The company vows to
continue with such ongoing reduction efforts in the years
Based in Austin, Minnesota, Hormel Foods Corporation is a
leading manufacturer and marketer of various meat and food products
in the United States and internationally. The company faces stiff
ConAgra Foods Inc.
Kraft Foods Inc.
Tyson Foods Inc.
We currently maintain a long-term Neutral recommendation on the
stock. Hormel has a Zacks #4 Rank, which translates into a
short-term (1-3 months) Sell rating.
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