Austin-based Hormel Foods announced Monday that Hormel and Excel Corporation, a wholly-owned subsidiary of Cargill Inc., have signed a letter of intent to form a joint venture to market nationally branded fresh case ready beef and pork under Hormel's "Always Tender" brand name to domestic retailers.

In a company-issued statement, Hormel officials said the two food companies are combining their marketing and distribution capabilities and expertise through this joint venture to provide complete case ready meat solutions that address consumers’ and retailers’ needs.

The joint venture’s name, Precept Foods LLC, represents the shared vision of Joel Johnson, chairman and Chief Executive Officer of Hormel Foods, and Warren Staley, chairman and Chief Executive Officer of Cargill.

"The word 'precept' illustrates our strategic plan for the joint venture,&uot; Johnson said. &uot;It signifies direction, order, principle and truth -- attributes already valued and exercised by both Excel and Hormel Foods. In essence, it means that the new company is about much more than just products. It’s also about offering meaningful solutions to all of the audiences we serve. With this solution-oriented tenet in mind, Precept Foods will continue the innovative traditions of Excel and Hormel Foods.&uot;

"Excel brings a consistent, quality beef product that is worthy of the Hormel name,&uot; Johnson added. &uot;Our success in the past 111 years is the result of continually raising the bar for the standard of quality required to carry the Hormel brand.&uot;

Cargill's Staley agreed

&uot;Livestock producers have been urging packers to market more meat through branded programs, noting that branding is a key to increasing the value of the livestock they own. This joint venture will take branding to a higher level by rounding out the successful "Hormel Always Tender" brand name in a full line of fresh case ready beef and pork products.&uot;

Bill Buckner, president of Excel, said Hormel Foods and Excel will remain independent competitors with respect to operations outside the joint venture. &uot;No two retail grocery customers are alike,&uot; Buckner said. &uot;By adding nationally branded beef to nationally branded pork, the joint venture opens additional options for retail grocers and consumers.&uot;