You're watching...
Hillshire Brands CEO Sean Connolly on the impact of commodity prices and the growth of the company’s brands.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
We'll see Sara Lee yes we love their pound cake officially splitting into two companies they don't even have the baking goods anymore but the -- company that's been spun off of course is one that's probably you know it very well.
The meat business that -- be focusing with -- -- farms the other side of that coffee and tea.
-- -- brands is a company that will include.
Brands like Jimmy Dean sausage -- sharp farms the company wants to become quote the most innovative meet centric food companies.
CEO Sean Connelly is here to tell us how he plans to do that you have a great.
Track -- record elsewhere so well one should not discount your bullish are you came -- -- January.
Cutting staff is that finished is the staff cut to the very minimum right now we announced that we're gonna spend the company at the beginning of 2011 so we've been preparing for eighteen months to right size the company to be -- four billion dollar company which we are we were -- -- -- more layoffs.
We're in good shape right now we think we're right size for what we need to do.
Jimmy Dean ballpark -- these are some of the very familiar names here that you have -- and -- have a whole bunch of products here.
But everybody knows these names and as we head into the fourth of July holiday this is a big story but.
How do you separate yourself from the competitors such as Tyson as you look to really.
The jump up ahead and start to grow do you need to do that by more -- -- -- What separates us is our our brand equities we have the number one leading brand equities and virtually every category we competed whether it's Jimmy Dean or ballpark.
We are number one consumers love our brands the -- The job we've got to do is keep these brands -- that's why -- innovation is so important to our future.
Let's talk about commodities this was talking to the top of the show about corn which is which is going up in price course some of them are falling dramatically first coffee which are out of now -- gone down tremendously.
How has has that affected your business and how how do you plan for.
Such a volatile market -- we have a variety of different ingredients are going or product we track them very closely in the last month we've seen some come down like pork.
You saw big news today on corn.
We're in the process of netting more ways -- corn is corn a big feed products they wanted to fix issues you brought it's part of part of the court.
Part of the animal feed is certainly a piece of it but again we've had tail winds and we've -- headwinds and the key is.
You've got to have strong brand equities that can really withstand these commodity swings in the market.
When -- talk to analysts and you need to either dispel this -- -- I don't know but when we talk to analysts they say this is a company that now having been spun off.
Is ripe for acquisition already -- branding name here HSH as the ticker symbol but.
The opportunity.
To remain independent is that something you want will you fight for that how do you represent yourself as going up against the other guys.
Our our job is to maximize shareholder value part of the reason you hear that speculation is because we've got such incredible portfolio brand equities.
We are very confident in our ability to be an independent stand alone public company that generates top tier shareholder return.
Here I'm holding in my hand at Dell -- -- don't know really go to the video of -- -- fact there is a -- this is this sort of a high brand gourmet sausage.
Now there -- -- mentioned Tyson is one of those people it's that the nature heals and and Hormel Foods is another went.
Is there any chance that that those companies might see enough -- your product -- by the company.
Well art portfolio again is industry leading but what we bring to the table and part of our go forward plan is to be the best consumer.
Our understanding company and innovation company in the space so when we see emerging consumer trends like adults and -- meets we jump on it and we're driving significant growth it happens to be our most expensive product.
And it's growing fast I -- I got to emphasize it and it's the question is -- any is there anything you're doing to either prevent or encourage.
Hormel or some other company from from buying up you guys we are focused on one thing and that's driving organic growth and our company right now.
We've got parts of our business that are working parts of our business we've got to -- we are very clear right around what they are we know exactly what we've got to do.
To get real growth that in his -- How many of these are people kind of creating over fourth of July could you imagine ballpark francs huge name out there thank you Sean you're welcome -- come back again when you've got some more news to break terrific isn't it ironic that mr.
food police Mayor Bloomberg is gonna be hosting the -- eating contest at a Coney Island.
Something -- about.
Think hopefully -- ballpark absolutely good to see.
