Hormel Buys Chicken Processor Brakebush for $1.055 Billion

Hormel Foods has agreed to buy value-added chicken company Brakebush Brothers for $1.055 billion, its latest move to deepen a protein portfolio that already spans Spam, Jennie-O turkey, Applegate organic meats, Planters nuts and Skippy peanut butter.

The deal, announced Oct. 1, 2026, is expected to close during the first quarter of Hormel's 2027 fiscal year, which ends in late January. Brakebush, founded in 1925 and headquartered in Wisconsin, generated approximately $1.2 billion in net sales during the last year. The family-owned company predominantly serves foodservice customers.

For the 135-year-old Hormel, the acquisition is a direct response to consumer demand. An estimated 70% of Americans say they want more protein in their diets, up from 59% four years ago, according to the International Food Information Council. Expanding use of GLP-1 weight-loss drugs has further fueled that demand, as consumers on the medications need more protein to fill nutritional gaps.

"Chicken has been one of the most attractive growth categories in protein, and Brakebush has built an exceptional platform to serve that demand," said John Ghingo, Hormel's president and incoming CEO. He added that Brakebush will bolster Hormel's foodservice operations by bringing additional scale, expertise and customer reach.

Ghingo has argued in recent months that Hormel's protein-heavy portfolio gives the company an edge over food makers hit by a sharp pullback in consumer spending. He told Food Dive that the portfolio is giving the Spam and Jennie-O maker a "unique" growth opportunity relative to the rest of the industry.

"Protein, in particular, has seen real resilience," Ghingo said. "As I think about us relative to the [rest of the food] industry, the fact that our portfolio is centered around protein is a really good place to be. The plot is as relevant as ever, and the growth opportunity is as ripe as ever for us."

Retail still accounts for more than 60% of Hormel's sales. But foodservice, at close to one-third of the business, has become a bright spot — and the Brakebush purchase pushes Hormel further in that direction.

The segment's strength stands out against a softer overall performance. During its most recent quarter, Hormel cut its net sales and organic net sales growth rate for fiscal 2026 amid declines in commodity turkeys and private label snack nuts, plus consumer hesitancy to spend because of inflation. The company's foodservice business, in contrast, posted a 2% increase in organic net sales.

The acquisition signals where Hormel sees its next phase of growth: in value-added chicken and foodservice channels, backed by a consumer protein trend the company believes remains durable. Once the deal closes in early fiscal 2027, Hormel will hold a substantially larger position in one of protein's fastest-growing categories.