Roughly 53% of HRLs products are perishable (fresh meats, frozen items, refrigerated meals, sausages, hams, guacamole, and bacon), 19% are poultry (Jennie-O turkey), 18% are shelf-stable (canned luncheon meats, microwaveable meals, stews, chilies, hash, tortillas, and peanut butter), and 10% are miscellaneous (nutritional food products and supplements, sugar, dessert mixes, and drink mixes). HRLs Five Key Brand Segments Grocery Products (17% of sales, 20% profit): sells shelf-stable food products predominantly in the retail market (Walmart accounted for 14% of company-wide sales last year). Refrigerated Foods (47% of sales, 38% profit): sells branded and unbranded pork and beef products for retail, foodservice, and fresh product customers. Jennie-O Turkey Store (18% of sales, 28% profit): sells branded and unbranded turkey products for retail, foodservice, and fresh product customers. Specialty Foods (12% of sales, 9% profit): sells private label shelf stable products, nutritional products, sugar, and condiments to industrial, retail, and foodservice customers. International and Other (6% of sales, 8% profit): sales of HRLs products in international markets such as China. Business Analysis Few companies survive for 125 years. HRLs competitive advantages are not about patents (HRL only has 63) or innovation (HRL spent $32 million on R&D last year). As one of the largest consumer-branded food and meat manufacturers, HRLs key to success is favorably altering customers perceptions of its products to gain loyalty and market share.
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