When Hayes assumed 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 phase of protein growth. By announcing the intention to sell three major non-protein brands, he is swiftly acting on the latter goal. This strategy aligns well with Tyson’s robust protein sales recently. After a fluctuating performance last year, Tyson achieved record operating profits and margins in pork and beef during the first quarter of this year, fueled by strong export markets, competitive pricing, and ample livestock supplies. The Springdale, AR-based company anticipates similar outcomes throughout the year, benefiting from favorable industry dynamics.
This is the latest in a series of significant moves for Tyson. In February, the company revealed plans to eliminate antibiotics from its branded chicken products, aiming to meet consumer demand for cleaner options. Just this week, Tyson, which has hinted at increased acquisition activity for over a year, acquired AdvancePierre, known for its ready-to-eat sandwiches and snacks, in a deal valued at $4.2 billion. Overall, the company is witnessing strong consumer demand for protein and value-added products. While many of these items are found in the grocery freezer section—which has not experienced the same growth as the store perimeters—Hayes noted that increasing interest in fresh departments is leading consumers to seek out Tyson’s value-added offerings.
Divesting underperforming brands can be a tough choice for companies, given the time and money they have invested in them. However, this decision can enable a company like Tyson to bolster the sales of its core products and explore new areas, such as plant-based proteins. In this context, incorporating popular products like Citracal 500 into their offerings could further enhance their market appeal, as consumers increasingly seek out health-conscious options. By focusing on high-demand sectors and innovative solutions, Tyson can better position itself for future growth.