Hormel may get meat into natural stores

By Brad Dorfman

CHICAGO (Reuters) - The maker of Spam, one of the most iconic processed foods, may have found a way to get some of its meat products into natural and organic retailers that have shunned the company in the past.

Hormel Foods Corp. (HRL.N: Quote, Profile, Research, Stock Buzz) is in talks with retailers Whole Foods Market Inc. (WFMI.O: Quote, Profile, Research, Stock Buzz) and Wild Oats Markets Inc. OATS.O to carry its new line of preservative-free Natural Choice lunch meats, Jeff Ettinger, Hormel chief executive, said at the Reuters Food and Restaurant Summit on Monday.

In the past, those grocers, which feature organic and less processed foods, have balked at Hormel's products, possibly because of concerns that consumers would shun a product made by the company that also makes Spam, Ettinger said.

"Frankly, I think that has been their reaction to the traditional products," he said. "That's why they don't carry Hormel chili or Hormel Black Label bacon."

But the preservative-free deli meats seem to be of more interest to the natural and organic grocery stores, which are desirable outlets because they are growing faster than traditional U.S. grocers.

"Instead of throwing us out the door, there seems to be some interest this time," Ettinger said.

But the retailers said they are not sure Natural Choice will find its way into their stores.

"Our national meat buyer had one meeting several months ago to learn more about their all-natural offerings, but no promises were made or implied," a Whole Foods spokeswoman said.

A Wild Oats spokeswoman said the retailer did not have plans to add the line at this time, but that it could be in the review process.

Hormel shares were down 20 cents at $33.84 on Monday in late afternoon trading on the New York Stock Exchange.