Tyson Foods, Inc. TSN, a prominent name in the meat industry, is all set to make its presence felt in the plant-based protein and blended products arena, through a lineup of product launches. The products will be introduced under the new Raised & Rooted brand. Let’s take a closer look at this latest development and see how it is likely to aid the company.
Alternative Protein Space Gains Traction
The alternative protein segment is growing rapidly on consumers’ rising inclination toward plant derived protein. In fact, Tyson Foods is the largest meat products player to enter this space with its own products. This latest development provides the company an opportunity to introduce exciting products in the meat space and cater to consumers who demand healthy and flexible protein options.
Under the new Raised & Rooted banner, the company plans to launch plant-based nuggets and blended burgers that include beef and plants as ingredients. While the nuggets are expected to be launched in late summer, the blended burgers are likely to be rolled out during the fall.
Going ahead, management plans to introduce additional alternative protein products, under different brands and sales channels. In fact, the company’s Aidells brand has launched a range of sausages and meatballs, which include plant derived protein as a major ingredient along with chicken.
Well, the latest move puts Tyson Foods in direct competition with Beyond Meat BYND, a company which also specializes in plat-based meat offerings. Notably, Tyson Foods held stakes in Beyond Meat, but had divested the same earlier this year.
Tyson Foods believes that its exceptional presence and experience in meat products are likely to expand its presence in the alternative meat products industry, and thereby help it counter competition effectively. It plans to keep expanding in this space through continued consumer insights and innovation.
Apart from alternative protein space, Tyson Foods is steadily expanding in the freshly prepared foods offerings arena, owing to consumers rising demand for natural fresh meat offerings without any added hormones or antibiotics. In this respect, the buyout of Tecumseh is quite noteworthy.
In addition to these, Tyson Foods strives to expand its traditional meat offerings. Moreover, the Chicken unit is doing exceptionally well, driven by prudent acquisitions. The company is also progressing with the Financial Fitness Program, which is aimed at boosting efficiency and fuel investments for growth.
Undoubtedly, the company’s efforts to build a solid meat products portfolio are likely to continue yielding and help it remain a solid pick for investors. Well, shares of this Zacks Rank #2 (Buy) company have rallied 26.5% in the past three months compared with the industry’s rise of 13.6%.
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