When Hormel Foods made a significant investment of $3.35 billion in acquiring Kraft Heinz’s snack nut portfolio four years ago, much of the focus was on the prized possession of the deal: Planters nuts.
Planters was on the verge of reaching $1 billion in sales and was poised to become one of Hormel’s top-selling products, surpassing other well-known items in their portfolio like Spam, Jennie-O turkey, and Justin’s peanut butter.
However, one brand that often went unnoticed but held immense potential in Hormel’s eyes was Corn Nuts. This crunchy snack, originally created during the Great Depression for bars and taverns, had been overshadowed by the success of its counterpart, Planters, under Kraft Heinz’s ownership.
Patrick Horbas, the market director for Corn Nuts and Planters at Hormel, believed that Corn Nuts was a hidden gem waiting to shine with the right focus and attention. He saw the opportunity to revitalize the brand and unlock its growth potential.
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Courtesy of Hormel Foods
When Hormel acquired the 89-year-old Corn Nuts brand in 2021, it was predominantly present in convenience stores but lacked significant exposure in other retail channels like grocery stores, where the demand for snacking options was growing. The brand had saturated markets in the western U.S. and needed to expand its reach to other regions, particularly the East Coast.
Hormel’s strategy for Corn Nuts included increasing its presence in retail outlets, focusing on innovation, and leveraging the snack’s unique shape that allowed for versatile flavor profiles.
The brand’s core flavors – Original, Ranch, BBQ, and Chile Picante Con Limon – served as a foundation for introducing new limited-time offerings that capitalized on current market trends. Flavors like Kickin’ Dill, Loaded Taco, and Mexican Street Corn started as limited editions but gained popularity to become permanent additions to the Corn Nuts lineup.
Patrick Horbas emphasized the versatility of corn kernels as a canvas for various flavors, highlighting the careful selection process for new product launches.
Since taking over the Corn Nuts brand, Hormel has witnessed significant growth in key performance indicators such as household penetration, sales, volume, and distribution.
Looking ahead, Hormel is exploring further opportunities for Corn Nuts, including the recent introduction of Corn Nuts Partially Popped, blending the classic crunch of Corn Nuts with the airy texture of popcorn for a new snacking experience.
Horbas hinted at the possibility of expanding the brand into different formats beyond the traditional crunchy kernel, acknowledging the risks and challenges of introducing new products but expressing openness to innovation and experimentation.