Spam, the luncheon meat that Hawai'i loves to eat, is being credited for helping fuel higher earnings at Hormel Foods Corp. during the three months ended Jan. 27.

Hormel yesterday reported that its profit in the quarter rose to $88.2 million, or 65 cents a share, as sales rose by more than $100 million to $1.62 billion.

Executives at Austin, Minnesota-based Hormel told investors and analysts on a conference call that a number of factors figured in its improved bottom line, including a double-digit percent increase in sales of Spam. It said sales of the canned meat product also were up in international markets. Hormel says Hawai'i consumes more Spam per capita than any other state.

"Grocery products also benefitted from strong sales of our Spam family of products, which were up 15 percent from a year ago," said Hormel president and chief executive Jeffrey Ettinger on the call.

Hormel has been looking for ways to increase sales of Spam and its other grocery products by introducing product variations. In Spam's case, this means adding such varieties as hot and spicy, golden honey and hickory smoke flavored Spam to its classic, low-sodium and lite versions. There's also Spam with bacon and Spam with cheese.

Last August, Hormel rolled out Spam Singles nationally, announcing to the press that it was "bringing Spam lovers the savory and salty-sweet taste they crave in a convenient, single-serve foil pouch great for an easy meal at home or on-the-go." The product is a 3-ounce slice of Spam.

Yesterday the company said the surge in Spam sales probably was aided by a comparison with a lower quarter last year and the introduction of Spam Singles. It also said the product may get a sales lift as consumers trade down from higher-priced products.