The day after Hormel Foods Corp.

Tuesday, February 01, 2000

The day after Hormel Foods Corp. shareholders learned their company was adding olive oil to the growing list of meat and food products being marketed around the world, details of the joint venture were revealed.

The Austin-based company agreed to terms with Eridania Beghin-Say, a diversified manufacturer headquartered in Paris, France, to form a joint venture known as Carapelli USA LLC.

The venture will be responsible for the national introduction of the Carapelli line of olive oils in retail stores throughout the United States and Puerto Rico.

Carapelli, founded in 1893, was a family-owned Tuscan company until it was acquired by EBS in 1989. Carapelli is based just south of Florence, Italy.

The Carapelli line consists of four varieties of olive oil, consisting of premium extra virgin, extra virgin, mild and light, available in three sizes of bottles.

Olive oils are considered excellent for use in frying, baking, sautes, pastas, sauces, salads and marinades as well as recipe ingredients and for flavoring entrees and side dishes.

"We are very pleased to have entered into this joint venture with such a renowned and highly regarded brand as Carapelli," said V. Allan Krejci, vice president of public relations with Hormel Foods. "Both Hormel Foods and Eridania Beghin-Say bring special skills to this venture."

"Hormel Foods offers its strong sales and marketing expertise, category management, customer service and logistics skills and successful track record of growth in many ethnic brands," Krejci said. "Carapelli brings important knowledge of the world’s leading olive oil markets, significant skills in sourcing raw materials, a strong research and development background, top manufacturing processes and global experience."

The joint venture is expected to stimulate sales of olive oil in the United States as consumers discover its many healthful benefits, according to Krejci.

Olive oil is high in monounsaturated fat which helps lower cholesterol, is naturally cholesterol-free and is rich in vitamins A, E and D, according to Krejci.

"Containing no salt, olive oil is high in lecithin, which is a natural antioxidant that stimulates the metabolism of fats, sugars and protein and can reduce the risk of arteriosclerosis as well as some forms of cancer," he said.

Hormel Foods has other subsidiaries, licensees and affiliate arrangements with companies in more than a dozen foreign countries.

Joel W. Johnson, Hormel chairman of the board, president and chief executive officer, first announced the joint venture at Tuesday night’s annual meeting of Hormel Foods shareholders in Austin.