AcquisitionFinance
Hormel Foods to Sell Whole‑Bird Turkey Business to Life‑Science Innovations
•February 19, 2026
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Why It Matters
By exiting the volatile commodity turkey segment, Hormel can allocate capital to higher‑margin, value‑added protein offerings, strengthening its competitive position as consumer preferences shift toward convenient, branded meat products.
Key Takeaways
- •Hormel sells whole‑bird turkey assets to Life‑Science Innovations
- •Deal includes Minnesota plant, feed mill, transport assets
- •Hormel retains Jennie‑O brand and tom‑turkey products
- •Focus shifts to value‑added deli meats and foodservice
- •Mirrors industry trend of shedding commodity meat operations
Pulse Analysis
The turkey market has been under strain since the 2022 avian influenza outbreak, which decimated flocks and drove feed costs higher. Producers faced a paradox: rising wholesale turkey prices but softened consumer demand as shoppers turned to chicken or plant‑based proteins for holiday meals. Hormel, a long‑time player in whole‑bird sales, saw its margins erode and opted to streamline its portfolio, a decision echoed by peers grappling with similar commodity volatility.
The Life‑Science Innovations acquisition gives the biotech firm a ready‑made production line, feed mill, and logistics network in Minnesota, positioning it to expand into animal‑health or alternative protein ventures. Hormel’s agreement to provide co‑manufacturing services through 2026 ensures a smooth transition for existing farmer contracts and preserves supply chain continuity. Retaining the Jennie‑O brand and its tom‑turkey products allows Hormel to stay in the growing ground‑turkey and deli‑meat segments, where brand equity and value‑added formulations command premium pricing.
Industry analysts view the sale as part of a broader shift away from low‑margin commodity meat toward branded, ready‑to‑eat offerings. Smithfield’s recent hog‑asset divestitures illustrate a similar strategy of reducing exposure to volatile raw‑material markets while investing in lunch‑meat and snack lines. For investors, Hormel’s focus on higher‑margin categories could improve earnings stability and align the company with rising protein‑as‑a‑service trends, positioning it favorably for future growth.
Deal Summary
Hormel Foods announced it will divest its whole‑bird turkey business, including a production facility and feed mill, to Life‑Science Innovations. The transaction, valued at an undisclosed amount, is set to close by the end of Hormel’s second quarter, allowing Hormel to focus on deli meat and value‑added products.
Article
Source: Food Dive (Industry Dive)
Hormel to sell off Thanksgiving turkey assets
The Jennie‑O owner is divesting its whole‑bird business to Life‑Science Innovations as it focuses more on deli meat and value‑added products.
Image caption: A person grabs a frozen turkey during a giveaway at Green Valley of Sunnyside Market Place on November 21, 2023 in the Sunnyside neighborhood of Queens borough, New York City. Michael M. Santiago via Getty Images
Dive Brief
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The deal, set to close at the end of Hormel’s second quarter, includes assets associated with hen turkeys, the birds used during Thanksgiving. President John Ghingo said the sale is “an important next step in our evolution” to focus its turkey portfolio around value‑added offerings such as lunch meats.
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Life‑Science Innovations (LSI) is acquiring Hormel’s production facility and feed mill in Minnesota, plus associated transportation assets. It will also assume farmer‑supply contracts and provide co‑manufacturing services to Hormel through the end of fiscal 2026.
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Hormel Foods is selling its whole‑bird turkey business to Life‑Science Innovations for an undisclosed amount, though it will retain the Jennie‑O brand.
Dive Insight
Hormel is paring down its presence in turkey after contending with headwinds including lower demand and bird flu, which killed tens of thousands of birds since 2022 and raised costs for meat producers.
Whole turkey prices have continued to rise as bird flu limits production. But because of lower demand, many companies have held off on passing along those costs to consumers. The price of Thanksgiving turkeys decreased in 2025 for consumers due to discounting, with more shoppers opting for chicken or other proteins as the star of their holiday meals.
By leaving the whole turkey business, Hormel can focus on growing profitable areas within the segment, including in foodservice and value‑added products. Hormel will retain its tom turkeys, the birds used in products like lean ground turkey, turkey burgers or deli meat.
Ghingo noted Jennie‑O is the No. 1 brand in retail for ground turkey, and the company will continue to pursue opportunities in the space as protein demand grows.
“We are exiting the part of the business that is more commodity‑oriented, that is more volatile, that is less connected to consumer demand and trends,” Ghingo told analysts at the Consumer Analyst Group of New York Conference this week.
Other meat producers have also sold off agricultural assets to reduce exposure to volatile commodity markets. Pork giant Smithfield has sold off hogs and renegotiated contracts with farmers as it also focuses on lunch meats and value‑added products.
Recommended Reading
- Lower turkey prices slash Thanksgiving dinner costs in 2025 – Laurel Deppen, Nov. 20, 2025.
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