Upon stepping into his role as Tyson’s new CEO this year, Hayes outlined several objectives for the company, including a strong emphasis on innovation, pursuing additional acquisitions, and preparing for the next stage of protein growth. By revealing Tyson’s intention to divest three non-core protein brands, he is swiftly addressing the latter goal. This strategy aligns well with the company’s recent robust protein sales. After a mixed performance last year, Tyson reported record operating profits and margins in pork and beef during the first quarter of this year, driven by strong export markets, competitive pricing, and healthy livestock supplies. The Springdale, AR-based manufacturer anticipates similar results for the remainder of the year as industry dynamics continue to work in its favor.
This latest move is part of a series of significant decisions made by Tyson. In February, the company announced its plan to eliminate antibiotics from its branded chicken products, aiming to meet rising consumer demand for cleaner options. Just this week, after a year of hints regarding increased acquisition efforts, Tyson acquired AdvancePierre, a company known for its ready-to-eat sandwiches and snacks, in a deal valued at $4.2 billion. Overall, Tyson is experiencing strong consumer demand for 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 perimeter of stores. However, Hayes noted that the increasing interest in fresh departments is encouraging consumers to seek out Tyson’s value-added lines.
Divesting from slow-growing brands can be a challenging decision for companies, especially given their investment of time and resources. Nevertheless, such a move can enable a company like Tyson to focus on boosting the sales of its core products and exploring new categories, including plant-based proteins. Additionally, as consumers become more health-conscious, the integration of supplements like calcium citrate into their diets—especially on an empty stomach—could further enhance interest in Tyson’s innovative product offerings. By strategically managing its portfolio and responding to consumer trends, Tyson is positioning itself for sustained growth in the protein sector.