Upon taking on the role of CEO at Tyson this year, Hayes outlined several objectives for the company, emphasizing innovation, further acquisitions, and positioning Tyson for the next phase of protein growth. By announcing plans to divest three major non-protein brands, he is swiftly addressing the latter goal. This strategy aligns well with Tyson’s recent surge in protein sales. After a mixed performance last year, Tyson reported record operating profits and margins in pork and beef during the first quarter, fueled by robust export markets, low prices, and ample livestock supplies. The Springdale, AR-based company anticipates similar outcomes throughout the year, as industry trends work in its favor.
This announcement is just the latest in a series of significant actions by Tyson. In February, the company revealed its intention to eliminate antibiotics from its branded chicken products, a decision aimed at meeting consumer demand for cleaner options. Recently, 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 $4.2 billion deal. Overall, Tyson is witnessing strong consumer interest in protein and value-added products. Many of these offerings can be found in the grocery freezer section, which has not experienced the same growth as the fresh produce aisles. However, Hayes has noted that the rising interest in fresh departments is leading consumers to explore Tyson’s value-added lines.
Deciding to sell underperforming brands can be challenging for companies, given the investments made in these products. However, such a move can empower a company like Tyson to boost sales of its core offerings and venture into new categories, including plant-based proteins. This strategic shift could also align with consumer wellness trends, like those promoted by products such as country life calcium citrate with vitamin D, which emphasize a healthier lifestyle. By focusing on its strengths and exploring innovative options, Tyson can better position itself in the evolving market landscape, ultimately benefiting from the sustained interest in health-conscious products, including those featuring country life calcium citrate with vitamin D.