Hormel Foods sells Brazil business to Zanchetta Alimentos
Financial terms of the transaction were not disclosed.
BRAZIL – Hormel Foods has agreed to sell its Brazil business, which operates under the Ceratti brand, to Brazilian food producer Zanchetta Alimentos as the US company continues to restructure its international operations.
The transaction includes the Ceratti brand and its production facilities, although neither company disclosed the financial value of the deal announced on June 29.
Hormel said the sale forms part of its plan to simplify its business portfolio and concentrate its international operations on markets that it considers to offer stronger long-term growth opportunities.
The US food manufacturer acquired Ceratti in 2017 by purchasing the Brazilian packaged meat producer Cidade do Sol, expanding its presence in South America’s processed meat sector.
Hormel reports its operations under three business segments: retail, foodservice, and international, with the international division contributing 6% of the company’s US$12 billion in net sales during the financial year ended October 26, 2025.
During that financial year, the international business recorded organic net sales of US$709.1 million, representing 1% growth compared with the previous year.
Despite the increase in sales, the international division reported a loss of US$80.4 million after posting a profit of US$92.1 million a year earlier, largely because of an impairment charge related to a minority investment in Indonesia.
Hormel also said competitive conditions in Brazil affected the international business during the fourth quarter, with the company citing market challenges that weighed on performance.
International business records stronger second quarter
In the second quarter of Hormel’s current financial year, which ended on April 26, the international segment posted 5% organic net sales growth, supported by higher Spam export sales and improved performance in China.
The division’s operating profit increased 14.8% to US$45 million during the quarter, while Hormel’s combined segment profit reached US$609.2 million.
The disposal of the Brazil business follows other portfolio changes made by Hormel this year, including a February agreement to sell its US whole-bird turkey operations to Life Science Innovations.
The company also entered into an agreement in October 2025 with Forward Consumer Partners to separate its Justin’s nut butter and chocolate snacks business as part of its broader portfolio review.
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