Hormel Foods is expanding its presence in the protein market with the acquisition of Brakebush Brothers, a value-added chicken products company, for $1.055 billion. The purchase is expected to close during the first quarter of Hormel’s 2027 fiscal year.
Founded in 1925 and based in Wisconsin, Brakebush achieved about $1.2 billion in net sales last year, mainly for foodservice clients. Hormel benefits from high protein demand, holding a diverse line-up that spans Applegate organic meats, the brand’s chili, Planters nuts, and Skippy peanut butter.
70% of Americans say they want more dietary protein now versus 59% four years prior, per the International Food Information Council. The rise in GLP-1 usage has also boosted this trend, as people on weight-loss drugs require extra protein to meet nutritional needs.
John Ghingo, Hormel’s president and future CEO, noted that chicken is a key protein growth area, and Brakebush provides a strong platform for this demand. He said the acquisition will enhance Hormel’s foodservice operations by adding more scale, know-how, and client access.
Although Hormel is mostly retail-focused, accounting for over 60% of sales, its foodservice arm remains a highlight, making up nearly a third of the business. In its latest quarter, Hormel lowered its fiscal 2026 net sales and organic growth forecasts due to falling turkey prices and sluggish snack nut sales. Despite this, the foodservice division saw a 2% rise in organic net sales.
John Ghingo recently stated that Hormel’s portfolio is giving the company a unique growth opportunity compared to other food makers struggling from a sharp pullback in consumer spending. He noted that protein has seen real resilience, and the growth opportunity is as ripe as ever for Hormel. This is because protein has been less affected by the decline in consumer spending, allowing Hormel to capitalize on the demand for protein products.
Hormel’s acquisition of Brakebush Brothers is expected to bolster its foodservice operations by bringing additional scale, expertise and customer reach.
