In this file:
· Tyson plans own plant-based foods
… Tyson is using all its resources to make "great tasting protein alternatives that are more accessible for everyone"… This market has matured enough that they want to have an active participation… There's a growing number of people that want to eat a product that they view as being healthier for them and it may be non-animal protein…
· Tyson, America’s Largest Meat Producer, Now Developing Vegan Meat
… Tyson, the world’s second largest meat producer, moving to offer plant-based protein options…
· With A New Partner Keeping An Eye On Feedlots, Tyson Foods Looks To Sell Better, Healthier Beef
… Although the industry is years into the reduction of antibiotics in its chicken supplies, a focus on beef is a newish frontier… Still, progress here is necessary…
· Tyson Foods to buy BRF’s EU and Thai operations
… Noel White, president and CEO of Tyson Foods said: “In addition to domestic benefits, the Keystone acquisition provided us with a scalable production platform in the Asian poultry market…
Tyson plans own plant-based foods
by Nathan Owens, Arkansas Democrat Gazette
February 9, 2019
Demand for products that look, feel and taste like meat, poultry and cheese will likely continue to grow, Tyson Foods said this week. The company plans to develop its own similar protein products and they could be on store shelves as early as this year, said Noel White, the company's president and chief executive.
During Tyson's first-quarter earnings call Thursday morning, White said Tyson is using all its resources to make "great tasting protein alternatives that are more accessible for everyone."
After the shareholders meeting in Springdale, White underscored his earlier remarks.
"What I was talking about this morning was purely organic growth ourselves -- within Tyson," he said in an interview. After making small investments in the alternative protein space the past two years, White said that in the coming weeks, Tyson will announce what it has been working on.
"What I was signaling today is that it is coming," White said. "And we will do it in a significant way."
Efforts from Tyson to move in this direction come as more shoppers try to cut, or limit, meat from their diets. According to recent Nielsen data collected over the 52 weeks that ended in August, U.S. retail sales of plant-based foods have grown 17 percent to over $3.7 billion.
Reasons why shoppers are swapping meat for the plant-based option vary, but "more often than not, it's for health reasons," said Martin Thoma, principal of marketing agency Thoma Thoma. They also may have ethical, environmental, or sustainable reasons for choosing burgers made from soy and pea protein as opposed to the real thing, he said.
"Any forward-looking companies are going into those categories," Thoma said.
According to news reports and company announcements, 2019 is shaping up to be the year that startups and big businesses invest more in the alternative protein space. Impossible Foods is set to take its veggie burger to market in the coming months. Beyond Meat (which has a 5 percent investment stake from Tyson) plans to triple its production, expand its product portfolio and likely go public. Chobani, known for its Greek yogurts, moved its first dairy-free products to market last month. And Nestle plans to offer the plant-based Incredible Burger this spring.
"It's growing rapidly," White said about the sector compared with the beef, pork or poultry sectors. This is the way to think about it -- "It's not either, it's and. Flexitarian right? That's where the growth is at. There's a growing number of people that want to eat a product that they view as being healthier for them and it may be non-animal protein, it may be a blended protein."
After the Hillshire merger in 2014, Tyson focused heavily on the prepared-foods segment, in part through acquisitions of sandwich-maker AdvancePierre and cheesesteak producer Original Philly Holdings. Today the prepared-foods segment is about an $8 billion business that generates annual operating income of $1 billion, White said.
He said it represents "about one-third of our earnings. So it's become a very meaningful portion of our business."
The company's growth strategy is to keep improving its prepared-foods business, followed by its international operations and its chicken, beef and pork businesses through acquisitions and mergers that offer stability for the enterprise, like the purchase of rendering business American Proteins Inc. for Tyson's chicken segment.
The past couple of months, Tyson has agreed to acquire Keystone Foods, a major chicken supplier to McDonald's, and some chicken operations in Thailand and Europe from a Brazilian company, BRF S.A. White declined to comment on the rumored reports from CNBC that Tyson is negotiating the purchase of Foster Farms for $2 billion. He said Tyson is taking a "very disciplined approach" to acquisitions and will be going to the bond market "very soon to finance Keystone and BRF."
The past two years, Tyson has also made venture capital investments in young startups that executives say "disrupt" the food market. Some are plant-based protein producer Beyond Meat, cell-based food producer Memphis Meats and most recently, MycoTechnology, a group that develops food ingredients from mushroom extract.
Ken Shea, a senior food and beverage analyst at Bloomberg Intelligence, said Tyson held a "seat at the table" with investments in startup companies, given its shareholder status, and now "they feel like they can do something at this point."
"This market has matured enough that they want to have an active participation," he said…
Tyson, America’s Largest Meat Producer, Now Developing Vegan Meat
by Paul Ibirogba, Vegan News
Feb 9, 2019
Tyson Foods, America’s largest meat producer, is developing its own plant-based meat that could be in stores later this year.
Noel White, president and CEO of the Arkansas-based company, told Arkansas Democrat-Gazette this week that the company is utilizing all the resources it has in order to create “great tasting protein alternatives that are more accessible for everyone.”
Following a shareholders meeting in Springdale, White followed up: “What I was signaling today is that it is coming,” adding “and we will do it in a significant way.”
According to the report, demand for alternative meat, poultry and cheese has led to Tyson Foods creating its own similar products.
Tyson, the world’s second largest meat producer, moving to offer plant-based protein options comes as consumers increasingly turn away from meat and increase their plant-based food intake primarily due to health concerns.
A study conducted by Nielsen found that plant-based food sales grew by 20% between June 2017 and June 2018, reaching a total of $3.3 billion, with the meat alternative category (not including tofu and tempeh) growing 24 percent to $670 million.
Meanwhile, sales of meat from animals grew just 2 percent during the same time period.
According to research conducted by sales and marketing agency Acosta, the vast majority of people consuming plant-based meat are meat eaters, who account for 71% of the purchases.
Jaime Athos, president and CEO of plant-based food company Tofurky, believes the fact that the foods are healthier and taste as good is what is leading meat eaters to turn toward plant-based products.
“Consumers are showing us that if they are presented with the option to choose healthier and more ethically produced plant-based foods without sacrificing taste, they will jump at it.”
Tyson now has a 5% stake in plant-based meat brand…
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With A New Partner Keeping An Eye On Feedlots, Tyson Foods Looks To Sell Better, Healthier Beef
Alicia Kelso, Contributor, Forbes
Feb 8, 2019
In early December, McDonald’s announced a plan to reduce the use of antibiotics in its global beef supply by 2020, becoming the largest restaurant chain to make such a commitment. The trickle-down effect was swift—within a week, for example, Wendy’s released an updated antibiotics-use policy of its own.
Although the industry is years into the reduction of antibiotics in its chicken supplies, a focus on beef is a newish frontier. As recently as October—prior to the McDonald’s and Wendy’s announcements—just two of the top 25 burger concepts received an A grade on an annual antibiotics report card compiled by the Natural Resources Defense Council and five other organizations. The rest received Ds at best.
Industry experts note antibiotics removal within the beef supply is more difficult because the animals live longer than chickens and have a higher tendency to get sick.
Still, progress here is necessary: The practice of distributing medically important antibiotics to livestock and poultry contributes to the spread of antibiotic-resistant bacteria, increasing the risk of drug-resistant infections in humans. The Centers for Disease Control and Prevention estimate that nearly two million Americans are affected by antibiotic-resistant infections every year, and at least 23,000 die as a direct result.
According to Chad Martin, senior vice president and GM of beef enterprise at Tyson Foods, the antibiotics headline is important, but the narrative runs much deeper for the nation’s largest beef supplier.
“The bigger objective is to drive improvement throughout the entire production cycle. We support the judicious use of antibiotics, but in order for us to lead this industry for long-term sustainability, we have to talk about much more than that,” he said. “I believe the consumer is getting further away from the farm and they don’t know what is happening, so we have to talk transparently to tell them the real story of the production cycle.”
For Tyson, what that means exactly is taking more of a holistic approach: ensuring animal care and well being, implementing new farm technologies, requiring that direct suppliers be Beef Quality Assurance certified, and collaborating with strategic partners to ensure higher standards. In August, for example, Tyson became the first beef processor to license the Progressive Beef program, a cattle-management and sustainability program for feedlot operators.
“We found ourselves in a position where we needed to provide more solutions, and that’s why we went forward last year with the licensure of Progressive Beef products. It’s not just about antibiotics, but also safety, animal care, sustainable production practices and more. In our opinion, this is the gold standard. We made the move to enable everyone to improve their supply chain,” Martin said.
Martin added that Tyson—with its scale and resources alone—could have differentiated its approach, perhaps even with a proprietary process, but chose not to.
“The right thing to do is to bring these solutions forward for everyone in the industry. We have an obligation because of our size to provide a system that allows for continued improvement in the entire supply chain,” Martin said.
That obligation is driven by consumers who are more knowledgeable and concerned about their food sources. According to a recent global YouGov survey, 78% of consumers won’t hesitate to switch brands if supply-chain performance fails to meet their expectations.
“The work we’re doing is the culmination of science and hearing what the customer is saying,” Martin said. “But it is a very complex issue. You’ve got to have the relationships with your suppliers, even if it’s an independent supplier. Our suppliers will react to needs that we have because what we’re doing is aligning with what the customer wants.”
Strategic Partnership With Progressive Beef ...
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Tyson Foods to buy BRF’s EU and Thai operations
Jake Davies, Poultry World
Feb 11, 2019
American multinational Tyson Foods has announced it intends to buy the Thai and European operations of Brazilian agri-food giant BRF S.A.
The transaction includes four processing facilities in Thailand, one in the Netherlands and one in the UK.
It follows the purchase of Keystone Foods in November, and fits with a strategy to expand operations in international markets.
Noel White, president and CEO of Tyson Foods said: “In addition to domestic benefits, the Keystone acquisition provided us with a scalable production platform in the Asian poultry market.
“The acquisition of these BRF facilities will help complement and strengthen our presence in Thailand, and provide new capabilities in Europe, enhancing our ability to serve growing global demand for value-added protein.”
Donnie King, group president of international for Tyson Foods added: “It’s estimated that approximately 90% of global protein consumption growth will occur outside the United States, with 60% of the volume growth coming from Asia over the next 5 years.
“Increasing our international footprint with in-country operations and export capabilities will help Tyson Foods strategically access new markets and better serve the growing global demand for our value-added protein.”
The Thai poultry operations include a feed mill, hatchery, breeder farms and contract growing operations supplying live birds for the four poultry processing facilities...