Hormel Foods ready for Prop 12 since 2022Hormel Foods ready for Prop 12 since 2022
Company expects a full range of compliant products to be available in both retail and foodservice.
May 17, 2023
Hormel Foods says it has been ready for Prop 12 since January 2022 and remains ready to serve customers and consumers in the State of California.
Hormel Foods sources hogs from more than 500 independent family farmers across the Midwest and from a company-owned farm in Colorado. All designated market hogs are housed in a group pen setting from birth. Additionally, the company-owned hog farm has transitioned to group sow housing.
The firm says it has assessed Proposition 12 and Question 3, and while they are still awaiting final clarity on specific details and rules, the company is preparing to fully comply when these laws go into effect. The company's Applegate portfolio of products already complies with Proposition 12 and Massachusetts Question 3.
Hormel Foods has confirmed that it faces no risk of material losses from compliance with Proposition 12 and Question 3. While these measures will add complexity to their supply chain, including costs associated with compliance, the firm says California and Massachusetts are important markets and they will continue to meet the needs of consumers and customers throughout these states.
As a global branded food company, Hormel Foods has a broad range of products currently sold in California and Massachusetts – from SKIPPY peanut butter to Wholly guacamole. Proposition 12 and Question 3 only impact the company's fresh pork business. Hormel Foods is currently working with its supply chain to implement internal processes for segregation and SKU expansion. They are currently working through supply and logistics planning surrounding affected products, but expect a full range of compliant products to be available in both retail and foodservice. The company says it will continue to work closely with customers to ensure that consumers in these states will still be able to purchase the Hormel Foods products they depend upon.
Beginning Jan. 1, 2022, Hormel Foods products required to be Proposition 12 compliant to be sold in the state of California are compliant. A compliance letter is available to retailers and consumers, upon request, that state the company's compliance. Additionally, commencing on Jan. 1, 2022, Hormel Foods chose to voluntarily comply with the California Department of Food and Agriculture draft regulation and all bills of lading, weight manifests and invoices for shipments for sales into California will bear the statement "Pork CA Prop 12 Compliant." Other products that do not bear that statement and are shipped into California for transshipment or export or to another federally inspected establishment in the state of California will bear the statement "Not Prop 12 Compliant" or "Only for use at Mxxx" (where the x's represent the establishment number for the destination facility).
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