Tyson Foods: Where, how you compete equally important

Leaders at Tyson Foods recognize that the demand for protein products is high, and it is positioning itself to help meet that demand.

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Sally Grimes | Tyson Foods
Sally Grimes | Tyson Foods

Leaders at Tyson Foods recognize that the demand for protein products is high, and the company is positioning itself to help meet that demand.

“Where you compete is just as important as how you compete,” Sally Grimes, Tyson’s president of prepared foods, said at the Barclays Consumer Staples Conference on September 6. “Compete effectively in a well-positioned, growing space, and you’re simply more likely to grow.”

As part of Tyson Foods’ plans to focus exclusively on protein products, the company announced in April that it was going to divest of its non-protein business units, which include the Sara Lee Frozen Bakery business, the Kettle business -- a producer of sauces, dips and side dishes, and Van’s, a producer of waffles and grain-based breakfast foods.

“Over half of us are actively trying to add more protein into our diets, and protein has risen to the top of all desired health attributes in food,” Grimes said. “The volume growth for high protein food looks a lot different than growth for food in general. We bring differentiated capabilities to this growth space. We add value, by building brands and innovating continuously in categories consumers want and in categories customers are focused on.”

Grimes spoke of how Tyson is expanding its lines of value-added fresh chicken, such as ground and pre-diced chicken, as well as its Jimmy Dean Simple Scrambles microwavable sausage and egg cups, as examples of innovation to meet growing protein demand.

Responding to changes at the retail level

While Grimes said protein demand is strong, the ways consumers purchase protein products is changing. “The perimeter of the store is changing,” she said.

Grimes noted that one way purchase trends is changing is through the “grocerant,” which she refers to as ready-to-eat or ready-to-heat food that consumers find in retail stores’ delis, in prepared foods sections at convenience stores, or at delivery or to-go sections at restaurants.

Tyson Foods has gained “incredible capabilities” to meet this demand through its purchase of AdvancePierre Foods, a producer of ready-to-eat lunch and dinner sandwiches, sandwich components and snacks.  That acquisition was completed in June.

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