Hillshire Makes Product Development A Goal In 2014

By Sam Lewis

Famous maker of smoked sausage plans to grow next year by developing current products and acquiring new ones

Famous for its ham, sausage, and lunch meat products, Hillshire Brands will be looking at 2014 as a time of growth and opportunity. The company will focus its energy on improving and innovating current products, as well as making acquisitions next year, with a focus on creating more chicken products to meet consumers’ demand for healthy food choices.

Formerly known as Sara Lee, Hillshire spun off its tea and coffee business in 2012, assuming the Hillshire name. Shortly after, Sean Connolly was appointed the company’s CEO. Since the summer of 2012, Hillshire has focused its efforts on improving the quality of its namesake lunch meats, creating new flavors of hot dogs under the BallPark brand, and developing low-calorie breakfast sandwiches under the Jimmy Dean brand.

Connolly recently spoke at The Year Ahead: 2014, a two-day conference in Chicago. At the conference, Connolly talked about the company’s outlook on consumer spending, the current trends in the food industry, along with Hillshire acquiring brands to add to its product family. “It’s a great acquisition environment,” Connolly says. In September, Hillshire bought the maker of gourmet jerky, Golden Island, for $35 million.

The company faces stiff competition from companies like Tyson, Hormel, Kraft, and Oscar Mayer in a food and beverage industry with declining consumer confidence, as it strives to make its products healthier. Connolly says the market is experiencing a “continued trend toward wellness.” Hillshire has transitioned its focus to match consumer needs — especially Millenial consumers, whose demands are very different from previous generations — concentrating on healthy options. According to Connolly, the company is working on new poultry items to increase sales.

Moving into 2014, Connolly recognizes that Hillshire, like all companies, will face adversity while seeking growth. Connolly believes Hillshire will persevere by remaining agile, ebbing and flowing with not only consumer demands, but fluctuations in the economy. “Our job is to make sure that our products are contemporary, relevant, and provocative,” he says, weighing Hillshire products against lower-priced options for budget conscience shoppers. “In our business, if you’re not provocative, you’re boring, and if you’re boring, you’re in trouble.” While the company is planning its growth predominantly by further developing it current line of products, Hillshire will also be active in the market, being disciplined as it looks for brands to acquire which will improve the company.

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