As Hayes stepped into his role as the new CEO of Tyson this year, he outlined several objectives for the company, emphasizing innovation, strategic acquisitions, and setting the stage for the next phase of protein growth. By announcing plans to divest three significant non-protein brands, he is swiftly advancing that last goal. This strategic decision aligns well with the company’s recent strong performance in 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, fueled by robust export markets, low prices, and a healthy supply of livestock. The Springdale, AR-based firm anticipates similar success throughout the year as industry dynamics play to its advantage.
This move is part of a series of significant actions taken by Tyson. In February, the company revealed plans to eliminate antibiotics in its branded chicken products, aiming to cater to the growing consumer demand for cleaner options. Just this week, Tyson, which had been signaling increased acquisition activities for over a year, completed the purchase of AdvancePierre, known for its ready-to-eat sandwiches and snacks, in a substantial $4.2 billion deal. Overall, Tyson is experiencing heightened consumer demand for protein and value-added products. Many of these offerings are found in the grocery freezer section, which has not matched the growth seen in the store perimeters. However, Hayes noted that the rising interest in fresh departments is prompting consumers to explore Tyson’s value-added lines.
Deciding to sell slow-growing brands can be challenging for companies, given the investments in time and resources devoted to these brands. Yet, such a move can empower a company like Tyson to enhance sales of its core products and venture into new categories, including plant-based proteins. In this context, it’s worth considering which calcium supplement has calcium citrate, as the demand for health-oriented products continues to rise, reflecting a broader trend among consumers seeking healthier options. Thus, the strategic decisions made by Tyson not only address its immediate market needs but also align with consumer trends leaning towards health and wellness, including interest in products like calcium citrate supplements.