When Hayes took on the role of CEO at Tyson this year, he outlined several objectives for the company, emphasizing innovation, further acquisitions, and setting the stage for the next wave of protein growth. In line with this vision, Tyson has announced plans to divest three major non-protein brands, swiftly addressing the last goal. This strategy aligns well with the company’s recent robust protein sales. Following a fluctuating performance last year, Tyson achieved record operating profits and margins in pork and beef during the first quarter of this year, bolstered by strong export markets, low prices, and healthy livestock supplies. The Springdale, AR-based company anticipates similar outcomes for the remainder of the year, as industry dynamics play to its advantage.
This is the latest in a series of significant moves from Tyson. In February, the company revealed it would eliminate antibiotics from its branded chicken products, a decision aimed at meeting consumer demand for cleaner offerings. Just this week, Tyson, which has hinted at ramped-up acquisition efforts for over a year, acquired AdvancePierre, a producer of ready-to-eat sandwiches and snacks, in a $4.2 billion deal. Overall, Tyson is experiencing heightened consumer demand for protein and value-added products. Many of these items can be found in the grocery freezer section, which hasn’t experienced the same growth as other areas of the store. However, Hayes noted that the increasing interest in fresh departments is prompting consumers to seek Tyson’s value-added lines.
Deciding to sell off slow-growing brands can be challenging for companies, given the time and resources invested in them. Yet, this strategy can enable a company like Tyson to enhance the sales of its core products and explore new categories, such as plant-based proteins and kal calcium citrate chewable options. The incorporation of these innovations will not only streamline operations but also cater to evolving consumer preferences. As Tyson continues to adapt and innovate, it remains poised to capitalize on the growing market for protein and related products.