licensed trademarks used in the Company's segments are:
HORMEL, ALWAYS TENDER, AMERICAN CLASSICS, AUSTIN BLUES, BLACK LABEL, CARAPELLI, CHI-CHI'S, CURE 81, CUREMASTER, DAN'S
PRIZE, DIAMOND CRYSTAL, DI LUSSO, DINTY MOORE, DUBUQUE, EL TORITO, FAST 'N EASY, HERB-OX, HERDEZ, HOMELAND, HOUSE OF
TSANG, JENNIE-O TURKEY STORE, KID'S KITCHEN, LAYOUT, LITTLE SIZZLERS, MARRAKESH EXPRESS, MARY KITCHEN, OLD
SMOKEHOUSE, PATAK'S, PELOPONNESE, PILLOW PACK, QUICK MEAL, RANGE BRAND, ROSA GRANDE, SANDWICH MAKER, SPAM, STAGG,
SWEET THING, THICK & EASY and WRANGLERS.
Customers and Backlog Orders
During fiscal year 2003, no customer accounted for more than 10 percent of total Company sales. The five largest customers in each segment make up
approximately the following percentage of segment sales: 39 percent of Grocery Products, 39 percent of Refrigerated Foods, 35 percent of JOTS,
51 percent of Specialty Foods, and 27 percent of All Other. The loss of one or more of the top customers in any of these segments could have a material
adverse effect on the results of such segment. Backlog orders are not significant due to the perishable nature of a large portion of the products. Orders
are accepted and shipped on a current basis.
Competition
The production and sale of meat and food products in the United States and internationally are highly competitive. The Company competes with
manufacturers of pork and turkey products, as well as national and regional producers of other meat and protein sources, such as beef, chicken and fish.
The Company believes that its largest domestic competitors for its Refrigerated Foods segment in 2003 were Tyson Foods, Smithfield Foods and
ConAgra Foods; for its Grocery Products segment, ConAgra Foods, Dial Corp. and Campbell Soup Co.; and for JOTS, ConAgra Foods and Cargill, Inc.
All Hormel segments compete on the basis of price, product quality, brand identification and customer service. Through aggressive marketing and strong
quality assurance programs, the Company's strategy is to provide higher quality products that possess strong brand recognition, which would then
support higher value perceptions from customers.
The Company competes using this same strategy in international markets around the world.
 
Research and Development
Research and development continues to be a vital part of the Company's strategy to extend existing brands and expand into new branded items. The
expenditures for research and development for fiscal 2003, 2002 and 2001, respectively, were $13,165,000, $12,097,000 and $11,478,000. There are 42
professional employees engaged in full time research, 19 in the area of improving existing products and 23 in developing new products.
Employees
As of October 25, 2003, the Company had over 16,000 active employees.