Spam has reached record sales for the seventh year in a row despites Covid-19 related challenges.
According to Hormel, the company that produces Spam, delivered £2.65 billion worth of sales in the three months leading to October.
In New York, Hormel’s shares rose by nearly 6% on Thursday and over the year, the company saw net sales of $11.4 billion which is 19% higher than the previous fiscal year.
Hormel chief executive Jim Snee accredits “long-term strategy, the pricing power of [their] brands, and [their] effective execution in the marketplace” for the company’s financial success this quarter.
Despite ongoing supply chain issues, its food service channel has risen 33% compared to pre-pandemic levels.
Snee attributed this to its “One Supply Chain team” who significantly increased production.
Additionally, Hormell signed a new five-year raw material agreement with their supplier in Fremont, Nebraska to “diversify away from commodity business” and to “increase flexibility” in their pork supply chain.
The strength of Spam’s global popularity, especially in the Asia-Pacific, has contributed to the brand’s double-digit sales growth in retail, deli and international channels.
“We delivered record sales and earnings this quarter with growth from every segment and channel,” Snee said.
“I’m extremely proud of how the entire team overcame numerous challenges to post these extraordinary results.”