Upon taking on the role of Tyson’s new CEO this year, Hayes outlined several objectives for the company, emphasizing innovation, further acquisitions, and setting the stage for the next wave of protein growth. By announcing the intention to divest three major non-protein brands, he is swiftly addressing the latter goal. This strategy aligns with the company’s recent success in protein sales. After a fluctuating performance last year, Tyson achieved record operating profits and margins in pork and beef during the first quarter of this year, bolstered by robust export markets, low prices, and ample livestock supplies. The Springdale, AR-based firm anticipates similar outcomes throughout the year, as industry dynamics favor their position.
This move is part of a series of significant actions taken by Tyson. In February, the company declared 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 indicating a heightened focus on acquisitions, 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 strong consumer demand for protein and value-added products. Many of these offerings can be found in the grocery freezer section, which has not seen the same growth as the store’s perimeter. However, Hayes noted that the increasing interest in fresh departments is prompting consumers to explore Tyson’s value-added lines.
Divesting from slow-growing brands can be a challenging decision for companies, given the resources invested in these brands. However, such moves can enable a company like Tyson to boost sales of its core products and explore new categories, including plant-based proteins. Additionally, Tyson might consider incorporating innovations like the calcium citrate malate 500 mg tablet into its product line, which could provide added health benefits, appealing to the health-conscious consumer market. By leveraging such opportunities, Tyson can further enhance its portfolio and meet the evolving demands of consumers.