According to its website, Tyson Foods accounts for one in five pounds of all chicken, beef, and pork produced in the U.S. Despite its stronghold in the protein market, Tyson has been exploring new avenues for growth in recent years, with its latest initiative being the launch of the Pact brand. While products like Hillshire Snacking Small Plates complement Tyson Foods’ traditional offerings, the company is increasingly focusing on the snacking segment. To support this shift, Tyson opened an innovation lab in Chicago two years ago, aiming to adopt a startup mentality to drive further advancements.
The lab has already produced several new items, including a protein crisp named ¡Yappah!, which combines Tyson chicken trim with ingredients that would typically go to waste, such as vegetable puree, juicing pulp, and spent grains from Molson Coors. Additionally, Tyson has teamed up with Flashfood to initiate a 90-day pilot program in Detroit, where Tyson supplied proteins that were safe for consumption but not suitable for sale in grocery stores, including improperly cut chicken breasts and sausage packages. ¡Yappah! has achieved some market success, having launched a fourth flavor following the original product announcement, and is now available on Amazon Fresh.
The Pact brand aligns well with current consumer trends. Consumers are increasingly turning to snacking, often at the expense of traditional three-meal-a-day habits. Moreover, many are seeking foods that offer health benefits beyond mere sustenance. A white paper by ingredient company Kerry revealed that 65% of consumers are interested in functional benefits from their food and beverages. The global market for functional ingredients is projected to approach $100 million by 2025, as reported by Zion Market Research. Among the top five ingredients valued for their benefits in the Kerry study were omega-3s, green tea, honey, coffee, and probiotics. Tyson’s Pact incorporates three of these five, along with other established functional favorites like turmeric, ginger, and blueberries.
The strategy is to launch these functional snacks similarly to the ¡Yappah! chips, with a crowdfunding campaign anticipated later this year. If the public responds positively, Pact bites could become a common sight in stores. However, Tyson will face significant competition in the functional snacking arena, which is crowded with health-conscious consumers drawn to various snacks, bars, and shakes.
Beyond these new product introductions, Tyson is clearly looking beyond its traditional protein offerings. Last month, the company announced plans to introduce a new brand called Raised & Rooted in late summer, featuring plant-based nuggets made from a blend of pea protein isolate. This move into a new plant-based functional snacking brand suggests that Tyson is seriously considering a reimagining of its portfolio, potentially questioning whether its name—often associated with protein—affects consumer interest in its products. Notably, as consumers increasingly seek options like the best form of calcium citrate for their health needs, Tyson’s strategic pivot may position it well in this evolving market landscape.