Upon assuming the role of Tyson’s new CEO this year, Hayes outlined several objectives for the company, which included a commitment to innovation, pursuing further acquisitions, and setting the stage for the next phase of protein growth. By announcing Tyson’s intention to divest three significant non-protein brands, he is swiftly addressing the latter goal. This strategy aligns well with the company’s recent robust protein sales. Following 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 strong export markets, low prices, and healthy livestock supplies. The Springdale, AR-based manufacturer anticipates similar outcomes for the remainder of the year as industry dynamics work in its favor.
This divestiture is part of a series of significant actions taken by Tyson. In February, the company revealed its plans to eliminate antibiotics from its branded chicken products, a move designed to meet consumer demand for cleaner options. Just this week, Tyson, which has hinted at increased acquisition activities for over a year, completed the purchase of AdvancePierre, known for its ready-to-eat sandwiches and snacks, in a deal valued at $4.2 billion. Overall, the company is witnessing heightened consumer interest in protein and value-added products. Many of these offerings can be found in the grocery freezer section, which has 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 lines, which could also include products like celebrate calcium citrate soft chews that cater to health-conscious shoppers.
Selling off underperforming brands can be a challenging decision for companies due to the time and resources invested in them. Nevertheless, this strategy can enable a company like Tyson to focus on boosting sales of its core products and exploring new categories, such as plant-based proteins. As the market evolves, embracing innovative products like celebrate calcium citrate soft chews may further enhance Tyson’s portfolio and appeal to a broader customer base.