Hormel announced today that it will be acquiring Columbus Manufacturing, an artisanal packaged meat company for $850 million dollars.
Last year, Columbus had an annual sales figure of around $300 million with an estimated 5% annual growth moving forward.
As you can see from the landing page for Columbuscraftmeats.com, it’s similar to those companies that also seem to be targeting the millennial generation. Buzz words like: Crafted, Anti-biotic free, & Authentic are all the craze with the under 35 crowd that is staying away from highly processed products.
“Most people in the food business regard Columbus as the Gucci of premium deli meat,” Gregory Purcell said, the CEO of the private equity group that originally purchased Columbus for $213 million in 2012. I really like this comment, it defines a company with a good reputation within its customer base, something paramount with any food company. Look at the struggles Chipotle is having right now after years of branding itself as a healthy, real ingredients with no antibiotics , fast-food chain.
I believe this acquisition was the right move for Hormel as it works to capture more and more market share within the pre-packaged meats industry.