Hormel (SPAM) gobbling up Applegate Farms for $775M

Hormel Foods, the company behind brands like Spam and Skippy, announced on Tuesday that it was acquiring Applegate Farms, a maker of natural and organic meats, for about $775 million.

Applegate Farms for $775M

This seems to be the trend for organic/non GMO companies to sell out to even larger corporations so it comes as now surprise.  Right now there is a large cold pressed juice company who our sources tells us is thinking of selling out to Coke (We’ll keep you updated on that one)

We’ve already seen Applegate having to recall thousands of pounds of “humanely” raised chicken because of plastic contamination (They were using Perdue as the meat packers which didn’t jive with many consumers) Some experts said the company wasn’t very transparent when the recall happened and showed their displeasure.   I appreciate that an Applegate rep reached out to me during this time and maybe I should have done an interview with them to hear their side. I know industry experts like Robyn O’Brien have expressed their  faith that Applegate will maintain their integrity, but with the recall in such recent history,  I admit I must express my concerns.

Let’s be honest. As even mainstream news has admitted; Hormel hasn’t ever  given a damn about organic food (and many would say they also don’t give a damn about humanely raised meat) So it’s kind of like the devil coming in and saying they’re going to buy an organic meat company.

From the Huffington Post piece on the acquisition:

Hormel Foods announced plans this week to acquire natural meat producer Applegate Farms for $775 million. The move will allow Hormel, best known for making the mysterious cured meat product known as Spam, to tap into rapidly growing consumer demand for healthier, more environmentally conscious foods.

Hormel has long been one of the country’s biggest meat companies, with two of the 10 best-selling brands of bacon in America and sales of over $8 billion a year. But until now, the company has done little to respond to the shift in consumer preferences toward humanely raised meat and minimally processed foods.

Hormel’s purchase of Bridgewater, New Jersey-based Applegate — which narrowly beats out Hormel’s 2013 acquisition of Skippy peanut butter as its largest buy ever — changes that with one stroke.

Obviously we are not fans of Hormel. And we hope they have some integrity as they will now own Applegate.  I suppose it’s the sign of the times, the experts say it’s inevitable they say. But I have much respect for small organic companies who refuse to sell out.   More from the article on the takeover:

“The Applegate team has built a great brand, and consumers can rest assured there will not be any changes to the way Applegate meats are raised and produced,” Hormel CEO Jeffrey Ettinger said.

“It was my mission from the start to change the way we think about meat –- how it’s raised and produced -– and this agreement is definitely a continuation of that mission,” added Applegate founder and CEO Stephen McDonnell.

We hope that the integrity of this company won’t change now that Hormel (SPAM) has bought the company.   It’s tough for us to not be a bit cynical though after the recall of the meat with Applegate because of plastic as they let another huge offender in the industry (Perdue) pack their meat for them. We’ll see how it all plays out.  I strongly recommend for those who eat meat that they go to their local farmer where they can see the animals and living conditions and I would never recommend anyone consume processed or deli/lunch meat. But that’s just me.