Spam sales reached a record high for the seventh year in a row in 2021, says CEO of Hormel Foods

Sales of canned meat Spam continue to grow, hitting a record high for the seventh year in a row in the parent company Hormel Foods’ financial year 2021, CEO Jim Snee told CNBC’s Jim Cramer on Thursday.

“It’s amazing. We’ve had to announce new capacity that we’ll bring online in 2023 to meet demand, so Spam is as strong as it has ever been,” Snee said in an interview with Mad Money.

The CEO’s performance comes after the Minnesota-based company reported results for the fourth quarter and full year. Hormel̵[ads1]7;s quarterly revenue of $ 3.45 billion topped Wall Street’s forecast of $ 3.22 billion. Earnings per share of 51 cents beat the estimates by 1 cent.

Hormel shares jumped 4.7% on Thursday to close at $ 44.80 as investors cheered on the results. The stock is down almost 4% so far this year.

For the year, Hormel had net sales of $ 11.4 billion, up 19% compared to fiscal year 2020. In June, the company completed the acquisition of Planters snacking portfolio, and so far Snee said it is performing “at the high end of our expectations.”

Snee said he was incredibly pleased with the company’s results, given the challenging operating environment during the pandemic. In terms of inflation, Snee said that Hormel has seen some moderation in the cost of material inputs.

“But when you think about the labor force increases we’ve had, the increase in our packaging, other supplies, getting the product shipped … I mean inflation is real. It’s significant,” Snee said. “It is being continued in the form of higher prices.”

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