Executives from Tyson Foods told investors at the Goldman Sachs Consumer Staples Conference that the company is transforming from a protein processor with one brand to a protein-centric consumer packaged goods company with a house of brands. The conference was held on May 12.
Donnie King, president of Tyson Foods’ North American operations and food service, and Dennis Leatherby, Tyson’s executive vice president and chief financial officer, talked about Tyson Foods' "advantaged brands in advantaged categories."
"We're demonstrating more stability and less volatility, and we have a growth story," King said. "We have the No. 1 or No. 2 brands in 13 core categories. Our products are growing 1.6 times faster than the total retail food and beverage category. Ninety-two percent of our frozen product sales and 99 percent of our refrigerated product sales are in categories that are growing, and we were No. 2 in retail dollar sales growth for the last 52-week period (according to IRI data)."
Leatherby said the company has raised its targets for prepared foods profit improvement initiatives and synergies from The Hillshire Brands acquisition to more than $250 million for the current fiscal year, $400 million in fiscal year 2016 and $600 million in fiscal year 2017.