Tyson Investor Day message highlights value-added expansion
Chairman John Tyson, President and CEO Noel White and members of the company’s senior management team spoke at the event, which showcased the strength of Tyson’s diversified portfolio, execution of its long-term growth strategy, efforts to increase its value-added product offerings, continued innovation in food and sustainability, and expansion into new global markets.
“We’re poised for long-term growth because we understand consumers and can meet their needs through a broad portfolio of diverse products,” said White. “As we look ahead, prepared foods and value-added chicken are expected to be the most profitable segments and international is where we see the most opportunity for significant growth.”
Additional key points shared at the event include:
- Tyson Foods’ Prepared Foods business has become a large, profitable growth engine. The segment represented 3% of company profits five years ago and today generates 30%.
- Through recent international acquisitions, Tyson Foods is positioned to take advantage of rising global protein demand. Over the next five years, it is estimated that nearly 98% of protein consumption growth will happen outside the US and approximately 70% of that growth will be in Asia.
- A worldwide decrease in pork supply due to the impact of African Swine Fever on the Chinese pig herd could offer significant upside to Tyson Foods’ poultry, pork and beef businesses, but could also increase raw material costs for the company’s prepared foods business.
- Beef has enjoyed demand growth resulting in higher beef margins. This trend is expected to continue due to factors such as increasing global middle-class income, increases in live cattle supplies and the continued growth of the company’s case-ready, value-added business.
- Tyson Foods’ poultry business continues to grow its mix of value-added products through acquisition and innovation in the retail and foodservice channels. Examples in retail are the recent acquisition of the Smart Chicken brand that offers premium, organic, air-chilled chicken and plans to launch new Tyson Air Fried chicken this fall.
- Demand growth for alternative proteins is being driven by people who love eating meat but also are open to a diet that includes plant-based proteins. Company leaders believe this growth is “incremental and meaningful in potential size” and recently introduced the company’s first plant-based and blended products.