Through recent acquisitions, Tyson Foods has greatly increased its international footprint.
The U.S.-based company in November 2018 increased its presence in China, South Korea, Malaysia, Thailand and Australia by acquiring Keystone Foods from Marfrig Global Foods.
Then, in June, the company completed the acquisition of BRF assets in Europe and Asia. That transaction included four production facilities in Thailand, and one each in the Netherlands and the United Kingdom.
Most recently, Tyson Foods announced it reached an agreement to acquire a 40% stake in the foods division of Grupo Vibra (Vibra Foods), a Brazilian producer and exporter of poultry products.
Prior to those deals, Tyson’s primary international presence was in China and India. The company earlier had operations in Mexico and Brazil, but divested of those assets, selling them to Pilgrim’s Pride and JBS, respectively.
While speaking at the Barclays Global Consumer Staples Conference on September 4, Tyson Foods CEO Noel White explained the company’s strategy when it comes to selecting which foreign markets to enter.
“We are approaching this very much from a demand standpoint, rather than a supply standpoint,” White said. “We look at the different markets and where the demand is going to take place, and then we build or buy assets to fill that demand, rather than looking at business purely from a supply standpoint.”
White added that putting more emphasis on supply rather than demand was a mistake it made “a number of years ago.”
Integration of new overseas assets
When asked about the integration of the assets gained through the deals with Marfrig and BRF, White said: “The integration has gone very smoothly. The synergies have exceeded expectations.”
White praised the work of Donnie King, a former Tyson Foods executive who returned to the company in January to be the president of Tyson’s international business. White said King has selected tremendous leaders to help him guide the international operations.
“Not only have we acquired some great assets, we have acquired some great individuals as well,” White said.
At the conference, White also offered an update on the refurbishing of the company’s beef processing plant in Finney County, Kansas, which was badly damaged by a fire.
