Upon stepping into the role of Tyson’s new CEO this year, Hayes outlined several objectives for the company, emphasizing innovation, pursuing additional acquisitions, and setting the stage for the next phase of protein growth. He is swiftly acting on the latter by announcing that Tyson intends to sell off three substantial non-protein brands. This decision aligns with the company’s recent strong protein sales. After a mixed performance last year, Tyson recorded exceptional operating profits and margins in pork and beef during the first quarter of this year, fueled by robust export markets, favorable pricing, and healthy livestock supplies. The Springdale, AR-based manufacturer anticipates maintaining similar results throughout the year as industry dynamics work in its favor.
This is yet another significant move for Tyson. In February, the company revealed plans to phase out antibiotics in its branded chicken products, aiming to meet consumer demand for cleaner offerings. Just this week, Tyson, which had hinted at increased acquisition activity for over a year, acquired AdvancePierre, a producer of ready-to-eat sandwiches and snacks, in a deal valued at $4.2 billion. Overall, the company is experiencing heightened consumer demand for protein and value-added options. Many of these products, including those containing calcium citrate bulk, are found in the grocery freezer section, which has not seen the same level of growth as other store areas. However, Hayes remarked that the rising interest in fresh departments is encouraging consumers to seek out Tyson’s value-added lines.
Divesting from slow-growing brands can be a challenging decision for companies, considering the investment of time and resources. Nevertheless, it can enable a company like Tyson to enhance the sales of its core products and explore new categories, such as plant-based proteins. The strategic use of ingredients like calcium citrate bulk could play a significant role in expanding their product offerings.