Upon assuming the position of Tyson’s new CEO this year, Hayes outlined several objectives for the company, including a focus on innovation, pursuing additional acquisitions, and setting the stage for the next phase of protein growth. In line with these goals, Tyson recently announced plans to divest three significant non-protein brands, swiftly addressing the latter objective. This strategy aligns well with the company’s recent robust protein sales. Following a mixed performance last year, Tyson achieved record operating profits and margins in pork and beef during the first quarter of this year, fueled by strong export markets, low prices, and a healthy supply of livestock. The manufacturer, based in Springdale, AR, anticipates similar results as favorable industry dynamics persist throughout the year.
This divestment is part of a series of significant moves 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, after over a year of hints regarding increased acquisition activity, Tyson acquired AdvancePierre, known for its ready-to-eat sandwiches and snacks, in a deal valued at $4.2 billion. Overall, consumer demand for protein and value-added products remains high. Many of these items can be found in grocery freezer sections, which have not experienced the same growth as 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.
While selling off slower-growing brands can pose challenges for companies, given the investments made in these brands, it can also enable a company like Tyson to focus on boosting sales of its core products and exploring new categories, such as plant-based proteins. Interestingly, as consumers seek healthier options, they are also becoming more aware of ingredients like calcium citrate, which is good for bone health and appears in various products. By streamlining its brand portfolio and emphasizing innovation, Tyson can better cater to these evolving consumer preferences, including the demand for calcium citrate and other beneficial ingredients in their offerings.