Hormel Foods to Implement EVA System

Oct 05, 1999, 01:00 ET from Hormel Foods

    AUSTIN, Minn., Oct. 5 /PRNewswire/ -- Hormel Foods Corporation (NYSE:   HRL)
 announced today plans to implement a new organizational structure to support
 the adoption of economic value added (EVA), a system to direct and assess
 business unit performance.  The company has partnered with Stern Stewart &
 Co., a New York-based management consulting firm and the pioneer in developing
 the EVA concept, to assist in implementation.  EVA, and the organizational
 changes associated with it, will become effective November 1, 1999, the start
 of Hormel Foods' fiscal year 2000.
     The plan to implement EVA is part of Hormel Foods overall efforts to
 improve performance and to analyze the company's value with a focus on making
 management think and act even more like shareholders.  "EVA encourages the
 efficient use of capital and rewards long-term consistent improvement rather
 than short-term results," explained Joel W. Johnson, chairman of the board,
 president and chief executive officer.  "We believe EVA will provide the
 measurement and incentive system to unify the goals of our various business
 units to one overriding goal of achieving and creating additional shareholder
 value.  Hormel Foods today is performing extremely well.  This positive
 momentum gives us an excellent platform from which to drive for even better
 performance in the future."
     With the adoption of EVA and the anticipated pending retirements of two
 long-time senior officers, Hormel Foods announced a sweeping consolidation and
 reorganization of its major operations into EVA units better able to
 streamline accountability and increase overall organizational effectiveness.
 "The restructuring has led to a number of significant promotions within the
 company," said Johnson, "that will make us a stronger and even more
 competitive organization."
     A newly formed Refrigerated Foods business unit will be led by Gary J.
 Ray, executive vice president, who will now have responsibility for fresh
 pork, processed pork and foodservice marketing and sales functions, in
 addition to the hog procurement, processing and logistics operations
 previously held.  Reporting to Ray will be Steven G. Binder, vice president of
 the Foodservice Group, William F. Snyder, newly elected vice president of
 operations for refrigerated foods, and Ronald W. Fielding who advances to
 group vice president of meat products, replacing Stanley E. Kerber who will
 end a distinguished 44-year career with his year-end retirement.  Other
 changes associated with this restructuring include the election of Kurt F.
 Mueller as vice president of sales and marketing for fresh pork and Joe C.
 Swedberg as vice president of marketing for processed meats.  Robert A. Slavik
 will continue as vice president of sales for processed meats.  These three
 executives will report to Fielding.
     Within the Prepared Foods unit, current group vice president Eric A.
 Brown's responsibilities expand to include manufacturing operations.  Gary C.
 Paxton, vice president, moves from the Operations Group to assume direct
 production responsibility for many of the company's and industry's best-known
 products.  He will report to Brown.  Grocery products marketing, to be led by
 Larry L. Vorpahl, newly named vice president, and grocery products sales,
 under the direction of Douglas R. Reetz, also appointed company vice
 president, will report to Brown.  The specialty products unit will continue
 unaffected by organizational changes, reporting to Brown.
     James A. Jorgenson, vice president of human resources, advances to senior
 vice president of corporate staff.  While continuing to have responsibility
 for personnel and human resource functions, Jorgenson will now have reporting
 to him all purchasing, logistics, customer service, industrial engineering,
 company air and fleet transportation and engineering operations.  Larry J.
 Pfeil advances from director to vice president of engineering.
     Mahlon C. Schneider, general counsel for the company, was elected senior
 vice president of external affairs.  He continues in this capacity as general
 counsel  while taking on added supervisory duties for marketing services and
 public relations.  V. Allan Krejci, director of public relations since June
 1983, was elected corporate vice president within the newly formed external
 affairs group.
     Also under the EVA framework, Bryan D. Farnsworth, director of quality
 management, now reports to Forrest D. Dryden, Ph.D., vice president of the
 company's Research & Development Division.
     Within Hormel Foods International Corporation (HFIC), under the direction
 of group vice president David N. Dickson, Richard A. Bross, corporate vice
 president, assumes increased responsibility as president of HFIC and the
 company's heightened efforts to expand its global presence.  Bross succeeds
 Fielding in this capacity.
     With the impending retirement early next year of James N. Rieth, Ph.D.,
 Hormel Foods vice president and president and chief executive officer of
 Jennie-O Foods, Jeffrey M. Ettinger, has been named his successor.  Ettinger
 will relocate to Willmar, Minn., the home of Jennie-O Foods.  Ettinger will be
 succeeded in his current capacity as corporate treasurer by James N. Sheehan,
 president of Hormel Financial Services Corp.
     "The promotions and restructuring changes related to EVA provide us with
 the foundation with which to continue the company's operational and financial
 successes," said Johnson.  "With this reorganization and the dedicated and
 talented group of employees leading it, our commitment to create shareholder
 value should be crystal clear."

SOURCE Hormel Foods