Upon taking on the role of Tyson’s new CEO this year, Hayes outlined several objectives for the company, including a commitment to innovation, pursuing additional acquisitions, and setting the stage for the next phase of protein growth. In line with these goals, he announced Tyson’s intention to divest three significant non-protein brands, swiftly addressing the latter objective. This decision aligns well with the recent surge in the company’s protein sales. Following a tumultuous 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 healthy livestock supplies. The Springdale, AR-based manufacturer anticipates similar success throughout the year as favorable industry conditions continue.
This marks the latest in a series of significant actions taken by Tyson. In February, the company revealed plans to eliminate antibiotics from its branded chicken products, a strategic move aimed at meeting consumer demand for cleaner options. Just this week, after hinting at increased acquisition efforts for over a year, Tyson acquired AdvancePierre, a producer of ready-to-eat sandwiches and snacks, in a deal valued at $4.2 billion. Overall, the company is experiencing high consumer demand for protein and value-added products. Many of these items can be found in the grocery freezer section, which has not seen the same level of growth as the outer aisles of stores. However, Hayes has noted that the rising interest in fresh departments is motivating consumers to explore Tyson’s value-added offerings.
Deciding to sell underperforming brands can be a challenging choice for companies, considering the investments of time and resources involved. Nevertheless, this strategy can enable a company like Tyson to enhance the sales of its core products and explore new categories, such as plant-based proteins. As they navigate these changes, it’s worth pondering whether the shift to alternative protein sources, like plant-based options, will lead to changes in consumer health perceptions, such as concerns about whether calcium citrate causes constipation. By focusing on core competencies and adapting to market demands, Tyson can continue to thrive in the competitive food industry while remaining attentive to consumer health trends, including questions surrounding dietary impacts like whether calcium citrate causes constipation.