Hormel Foods is selling its Brazilian operations, which have been a drag on the company’s overall performance, according to interim CEO Jeffrey Ettinger.
The company has reached a deal to sell its business in Brazil to Zanchetta Alimentos, another food maker in the country, allowing it to exit a market that has weighed on its international operations.
They operate the Ceratti brand, which offers meats such as mortadella, sausage, and salami for the Brazilian retail and foodservice markets.
Hormel Foods said the divestiture reflects its ongoing efforts to simplify and streamline its portfolio and focus its international strategy on markets with the strongest long-term growth opportunities.
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The transaction is expected to close in the coming weeks following regulatory approval, and operations will continue as usual in the interim.
Hormel’s international business makes up a small portion of its sales, with the majority coming from U.S. retail and foodservice markets.
The company purchased Ceratti owner Cidade do Sol for $104 million in 2017, saying at the time it would allow Hormel to enter Brazil and serve as a platform for future growth in South America.
During the company’s fourth-quarter earnings call in December 2025, Ettinger told analysts that the Brazil market was challenged and hurt the ability of its international segment to deliver on growth objectives.
Ettinger stated that Brazil has been a drag in terms of overall performance, and added that everything is under review as the company assesses its portfolio.
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The decision to sell its Brazilian operations is part of the company’s efforts to simplify its portfolio and focus on markets with the strongest long-term growth opportunities.
It is subject to regulatory approval, and the terms of the deal were not disclosed.
Hormel Foods reported that its international business was hindered by the challenges in Brazil in 2025, and the company is now focusing on simplifying its portfolio and streamlining its operations.
The company is reassessing its operations and making decisions to drive growth and profitability, often by adjusting their international strategy.