Tyson Foods' decision to sell its pet treats business was largely made to help the diversified protein company focus more on expanding its production of proteins for human consumption.
During the 16th Annual BMO Global Farm to Market Conference on May 19, Stewart Glendinning, executive vice president and chief financial officer of Tyson Foods, talked about the announcement that Tyson is selling its pet treats business to General Mills for a price of about $1.2 million. The transaction involves the Nudges, True Chews and Top Chews lines, which were all established from 2010 to 2012.
“We just think there are places in our business where we can get sharper and go deeper,” explained Glendinning.
While Glendinning said Tyson Foods’ balance sheet is presently strong, he said building financial strength, investing in the business and returning cash to shareholders are all important. Tyson Foods has initiated a number of capital expenditure projects in recent years, and he said the company believes it needs to do so even more now, given the consumer trend of increased demand for protein.
“We think it’s really important to invest behind our business,” said Glendinning. “You can’t go through 11 quarters of retail share growth and not start to put a little in your overall capacity. We want to make sure as an organization that we continue to grow, we continue to invest in capacity, and we stay ahead of the game,” he said.
During the same conference, Tyson Foods CEO Dean Banks said the company intends to grow globally, both organically and through mergers and acquisitions, and that Tyson’s portfolio of value-added, further-processed and case-ready meats will grow.
Tyson Foods is the largest broiler company in the United States and the fifth largest turkey producer. The company is also a major producer of pork and beef products, and it recently entered the plant-based protein sector.
