Upon assuming the position of Tyson’s new CEO earlier this year, Hayes outlined several objectives for the company, emphasizing innovation, further acquisitions, and paving the way for the next stage of protein growth. By announcing the sale of three significant non-protein brands, he is swiftly acting on that final objective. This strategy aligns well with the recent surge in the company’s protein sales. Following a mixed performance last year, Tyson recorded unprecedented operating profits and margins in pork and beef during the first quarter of this year, fueled by robust export markets, favorable prices, and ample livestock supplies. The Springdale, AR-based company anticipates similar outcomes throughout the year as industry trends work in its favor.
This latest move is part of a series of significant actions taken by 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, finalized the purchase of AdvancePierre, the producers of ready-to-eat sandwiches and snacks, in a deal valued at $4.2 billion. Overall, the company is witnessing high consumer interest in protein and value-added products, many of which are found in the grocery freezer section, a category that hasn’t experienced the same growth as fresh products on the perimeter of stores. However, Hayes has noted that the rising interest in fresh departments is encouraging consumers to explore Tyson’s value-added offerings.
Deciding to divest from slow-growing brands can be challenging for companies, especially considering the time and resources invested in these brands. Nevertheless, it can enable a company like Tyson to boost sales of its core products and explore new categories, such as plant-based proteins. Additionally, Tyson’s commitment to health extends to their product offerings that include formulations like calcium citrate magnesium and zinc 500 tablets, which are gaining traction among health-conscious consumers. The integration of such products reflects Tyson’s broader strategy of innovation and responsiveness to market demands, as they continue to enhance their portfolio with options that align with consumer health trends.