Hormel Foods offloads Ceratti Brazil business to Zanchetta Alimentos after $80.4m loss
HRL•Hormel Foods is selling its Ceratti-branded Brazil business to Zanchetta Alimentos to streamline its portfolio and target higher-growth markets. Hormel's international segment, which made 6% of $12bn sales but lost $80.4m last year, posted a 5% organic sales gain and 14.8% profit growth to $45m in Q2.
1. Ceratti Brazil Business Sale
Hormel Foods has agreed to sell its Ceratti-branded operations in Brazil to domestic producer Zanchetta Alimentos. The deal, which includes production assets, marks the end of Hormel’s ownership of the Ceratti brand acquired in 2017 via Cidade do Sol; financial terms were not disclosed.
2. International Segment Performance
In the fiscal year ending 26 October, Hormel's international division generated $709.1m in net sales—6% of the company’s $12bn total—but recorded an $80.4m loss due to impairment charges and competitive pressures in Brazil. In Q2 of the current year, the segment achieved a 5% organic sales increase and a 14.8% rise in profit to $45m.
3. Strategic Portfolio Simplification
This sale aligns with Hormel’s strategy to concentrate on markets with stronger long-term growth potential and simplify its business. Recent divestments include its US whole-bird turkey operations in February and the separation of Justin’s nut butter and chocolate snacks in October.
