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·         Tyson launches alt-shrimp made from plants — and it could be jumbo

·         Tyson Foods invests in plant-based shrimp company

 

 

Tyson launches alt-shrimp made from plants — and it could be jumbo

 

By Laura Reiley, The Washington Post

September 5, 2019

 

Tyson Foods is riding the new wave. Literally. On Thursday the world’s second-largest processor and marketer of chicken, beef and pork announced it is moving in a whole new direction: plant-based shellfish. Tyson has invested in New Wave Foods, a San Francisco-based start-up that will debut plant-based shrimp early next year.

 

“I was introduced to New Wave by a venture capital friend of mine, and I flew out and had the product prepared for me by a chef, and I didn’t even know it wasn’t shrimp,” says Tom Mastrobuoni, chief financial officer of Tyson Ventures.

 

This is a new entry into the plant-based protein revolution led by Impossible Foods and Beyond Meat, a heady world of products that cook, bleed and chew like real flesh. Since Beyond’s stratospheric IPO in May, plant-based debuts have been the talk of the food world, with establishment companies such as Smithfield, Perdue and Nestlé jumping on board.

 

Tyson was an early adopter, owning a 6.52 percent share in Beyond Meat, only to hop out pre-public offering to announce its own plant-based meat brand, Raised & Rooted.

 

This, however, is something largely unprecedented, according to New Wave chief executive Mary McGovern.

 

“This is the first disrupter in this particular kind of protein, and there’s a clear advantage to coming in and being the first disruptive shrimp.”

 

Shrimp are the most-consumed seafood on the planet...

 

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https://www.washingtonpost.com/business/2019/09/05/tyson-launches-alt-shrimp-made-plants-it-could-be-jumbo/

 

 

Tyson Foods invests in plant-based shrimp company

 

    After selling its stake in Beyond Meat in the spring, Tyson Foods’ next bet is on plant-based shellfish.

    Its venture capital arm is making the investment in New Wave Foods.

    The start-up makes plant-based shrimp from seaweed, soy protein and natural flavors.

 

Amelia Lucas, CNBC  

Sep 5, 2019   

           

After selling its stake in Beyond Meat in the spring, Tyson Foods’ next bet is on plant-based shellfish.

 

Tyson Ventures, the venture capital arm of the meat processing company, is investing in New Wave Foods. Tyson Ventures CFO Tom Mastrobuoni declined to discuss the financial terms of deal but said that Tyson took a minority stake of less than 20% in New Wave.

 

The start-up, which was founded in 2015, makes plant-based shrimp from seaweed, soy protein and natural flavors.

 

“I tasted it for the first time in a cafe in Palo Alto, and I had no idea I was eating plant-based shrimp,” Mastrobuoni said.

 

After shrimp, New Wave is planning to tackle crab and lobster. Shrimp is the most consumed seafood in the world, according to co-founder and Chief Technology Officer Michelle Wolf.

 

“From a business perspective, it made sense because of the market opportunity,” Wolf said.

 

While there are a number of companies tackling plant-based fish like salmon or tuna alternatives, New Wave is one of the few trying to sell crustacean substitutes. Mastrobuoni said that the lack of competition made New Wave a more attractive investment.

 

Tyson will leverage its scale and network to help accelerate New Wave’s growth.

 

“We’ve said this all along — alternative protein is an ‘and’ concept for Tyson, it’s not an ‘or,’ ” Mastrobuoni said.

 

For now, New Wave Foods’ distribution is limited to three food-service locations rather than restaurants. CEO Mary McGovern said the company plans to target food service first, in part because 80% of shrimp consumption in the U.S. happens outside the home.

 

New Wave is Tyson Ventures’ ninth investment since starting the fund in 2016. Mastrobuoni declined to disclose any track record of the fund’s performance...

 

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https://www.cnbc.com/2019/09/05/tyson-foods-invests-in-plant-based-shrimp-company.html

 

 

Perfect storm prompts Tyson Foods to reduce fourth-quarter guidance

 

By Keith Nunes, Food Business News 

09.05.2019

 

BOSTON — Several “discrete challenges” during the fourth quarter of fiscal 2019 led Tyson Foods, Inc. to reduce its adjusted earnings per share guidance to $5.30 to $5.70. A month earlier, when the company announced its third-quarter results, management maintained its earlier guidance of $5.75 to $6.10 per share. Issues affecting performance include weakness in its Chicken business unit, grain market volatility and a fire at a beef processing plant.

 

Speaking Sept. 4 at the Barclays Global Consumer Staples conference in Boston, Noel W. White, president and chief executive officer of Tyson Foods, elaborated on the guidance reduction, saying the adjustment in guidance amounted to approximately $220 million.

 

“So, the $220 million was made up of about half poultry adjustment, so a little over $100 million, which represented right at 50%, and then the other, there’s about 30% that is made in the mark-to-market adjustment,” he said. “We wrote-up some rate derivatives into Q3. Since then, grain has come down sharply. So, this is a reversal of what we wrote-up in Q3.

 

The other 20% includes overall market volatility during August that affected Tyson’s Prepared Foods business unit and the fire at the beef plant.

 

“For the most part, it was extremely unusual to have that number of events within one quarter,” Mr. White said. “Typically, we’ll have some things that will happen during a quarter and we can overcome them. The fact that we had a number of events on the same quarter present particular challenges.”

 

Mr. White said several chicken-related recalls during the quarter are affecting Chicken business results.

 

“We, in fact, slowed our line speeds down, our production volumes, to make sure that the product that we were producing and shipping, was the safest possible,” he said. “That came at a pretty significant cost.”

 

He added that corrective measures were taken to get plants back to full production and that several management changes within the Chicken business have been made to get it back on track.

 

During the presentation, Mr. White was pressed on the 40c range in the new guidance, which was questioned as being wide.

 

“Because there is still a great deal of volatility,” he said. “If grains would adjust from where they are currently, that could have an impact on our e.p.s., whether they go up, whether they go down. So, we still have roughly 5 weeks, 4.5 weeks before the end of the quarter, and that’s impossible to predict what the derivatives might do.

 

“The other is the markets...

 

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https://www.foodbusinessnews.net/articles/14434-perfect-storm-prompts-tyson-foods-to-reduce-fourth-quarter-guidance