US food company Hillshire Brands plans to focus on core brands, pursue acquisitions, and introduce new products, in order to achieve profitable growth over the next three years.
The company outlined its strategic growth plans at a presentation at the Barclays Back-to-School Consumer Conference in Boston, Massachusetts,
Hillshire Brands noted that it will strengthen its core brands Hillshire Farm, Ball Park, Jimmy Dean, State Fair, Aidells and Gallo; expand into adjacencies and augmenting the strength of its portfolio through selective acquisitions; and introduce innovative new line extensions and product upgrades to further enhance its portfolio.
The company plans to support its products through greater marketing, advertising and promotion (MAP) spend - between 13% and 15% of total revenue by fiscal 2015; up from historic levels of 9% of revenue.
Hillshire Brands reiterated fiscal 2013 guidance of net sales in line with fiscal 2012, and adjusted EPS in the range of $1.40 and $1.55. It had adjusted diluted EPS for continuing operations of $1.47 for fiscal 2012 versus $1.20 for fiscal 2011.
Hillshire Brands focuses on meat-centric food products and foodservice operations. It offers several consumer brands such as Jimmy Dean, Hillshire Farm, Ball Park, Aidells, Gallo Salame and State Fair.
