Diamond Crystal Brands (December 2002), and Diamond Crystal Brands Nutritional Products (April 2001).
No new product in fiscal 2003 required a material investment of Company assets.
Domestically, the Company sells its products in all 50 states. Hormel products are sold through Company sales personnel, operating in assigned
territories coordinated from district sales offices located in most of the larger U.S. cities, as well as independent brokers and distributors. As of
October 25, 2003, the Company had approximately 600 sales personnel engaged in selling its products. Distribution of products to customers is by
common carrier.
 
 
Through HFIC, the Company markets its products in various locations throughout the world. Some of the larger markets include Australia, Canada,
China, England, Japan, Mexico and Micronesia. The distribution of export sales to customers is by common carrier, while the China operations own and
operate their own delivery system. The Company, through HFIC, has licensed companies to manufacture various Hormel products internationally on a
royalty basis, with the primary licensees being Tulip International of Denmark and CJ Corp. of South Korea.
Raw Materials
The Company has, for the past several years, been concentrating on processed branded products for consumers with year-round demand to minimize
the seasonal variation experienced with commodity type products. Pork continues to be the primary raw material for Company products. Although hog
producers are moving toward larger, more efficient year-round confinement operations and supply contracts are becoming increasingly prevalent in the
industry, there is still a seasonal variation in the supply of fresh pork materials. The Company's expanding line of processed items has reduced but not
eliminated the sensitivity of Company results to raw material supply and price fluctuations.