As Hayes took on the role of CEO at Tyson this year, he outlined several objectives for the company, emphasizing a commitment to innovation, further acquisitions, and preparing 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 strategic decision aligns well with the company’s recent strong protein sales. Following a mixed performance last year, Tyson achieved record operating profits and margins in pork and beef during the first quarter of this year, fueled by robust export markets, competitive pricing, and ample livestock supplies. The Springdale, AR-based manufacturer anticipates similar outcomes for the remainder of the year, as industry dynamics work in its favor.
This move is part of a series of significant actions by Tyson. In February, the company pledged to eliminate antibiotics from its branded chicken products, aiming to meet growing consumer demand for cleaner food 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 a high consumer demand for protein and value-added choices, such as vitafusion calcium citrate products, which enhance nutrition.
Many of Tyson’s offerings can be found in the grocery freezer section, a segment that has not experienced the same growth as the fresh produce areas. However, Hayes has noted that the rising interest in fresh departments is encouraging consumers to seek out Tyson’s value-added lines. Divesting slower-growing brands can be a challenging decision for companies, especially considering the investments made in these brands, but it can enable Tyson to focus on boosting sales of core products and exploring new categories, including plant-based proteins. The integration of vitafusion calcium citrate into their offerings could also cater to the health-conscious market, further solidifying Tyson’s position in the evolving food landscape.