Tyson Foods’ entry into the alternative protein sector should be successful and bring a quick return on investment, due to advantages it has over any competing startup company, Tyson Foods Chief Financial Officer Stewart Glendinning said.
Speaking on May 15 at the BMO Capital Markets Farm to Market Conference, Glendinning, along with Tyson Foods CEO Noel White, addressed the company’s plans to develop, produce and market plant-based protein products.
One edge Tyson Foods has over plant-based protein startup companies is that it does not need as much capital to get its products into commerce.
“If we were starting from the ground up, and we had nothing, we’d have to build a lot of assets,” Glendinning said. “We have a transportation network; we have a refrigerated storage network, we have a sales force. “(We have) so many of the pieces. We have the test kitchens, we have the science labs and all of the things that you need to bring a new product like this to market that would otherwise require capital if you were a startup. …
“We are in a very, very powerful position to execute efficiently and effectively in the space, not to mention the fact that we already have strong brand power.”
Withdrawn investment in Beyond Meat
Tyson Foods was an early investor in several alternative protein companies, including plant-based protein company Beyond Meat. However, Tyson recently exited its investment in that company to pursue its own alternative proteins venture.
“It came to the point in time that we decided we were going to enter that market ourselves, and do it in a meaningful way. Rather than competing directly with someone we have an investment in, we decided that we would exit the investment and move into that category, utilizing all the resources we have available to us,” White said.
A potential 'billion-dollar brand'
With the growing popularity of plant-based proteins, and the competitive advantages Glendinning mentioned, White said Tyson’s alternative protein has the potential to be a “billion-dollar brand.”
“It is a growing category. Can it be a billion-dollar brand? Yeah, I think it can be in time. It’s a space that we identified some time ago as an emerging category. I think it certainly has the capability of being a billion-dollar business,” White said.
Executives with Sanderson Farms on the same day also spoke at the BMO Capital Markets Farm to Market Conference.
