Upon assuming his role as Tyson’s new CEO this year, Hayes outlined several objectives for the company, emphasizing innovation, further acquisitions, and setting the stage for the next phase of protein growth. By revealing that Tyson intends to divest three major non-protein brands, he is swiftly addressing the latter goal. This strategic decision aligns with the company’s recent robust protein sales. Following a challenging year, Tyson experienced record operating profits and margins in pork and beef during the first quarter, driven by strong export markets, favorable prices, and healthy livestock supplies. The Springdale, AR-based manufacturer anticipates similar outcomes throughout the year, as favorable industry conditions continue to support its growth.
This latest move is part of a series of significant actions by Tyson. In February, the company announced plans to eliminate antibiotics from its branded chicken products, a strategy aimed at meeting consumer demand for cleaner products. 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 $4.2 billion deal. Overall, the company is witnessing high consumer demand for protein and value-added options. Many of these products are found in the grocery freezer section, which has not experienced the same growth as the perimeter of stores. However, Hayes has noted that the rising interest in fresh departments is encouraging consumers to seek out Tyson’s value-added lines.
Divesting slow-growing brands can be a challenging decision for companies, given the time and financial investment involved. However, it can enable a company like Tyson to enhance the sales of its core products and explore new categories, such as plant-based proteins. Additionally, the incorporation of innovations like calcium citrate zeelab into product development could further strengthen Tyson’s market position, allowing the company to meet evolving consumer needs and preferences. By focusing on its core strengths and exploring new avenues, Tyson can ensure sustainable growth in the competitive protein market.