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Tyson Foods, Inc. TSN is focused on expanding its protein-packed brands to cater to the rising demand for such food among consumers. This is evident from the expansion of Raised & Rooted— a plant-based protein brand— in Europe.
The European Raised & Rooted range will offer five types of plant-based products including Light & Crispy Battered Nuggets, Crunchy Breaded Nuggets, Garlic & Herb Dipping Fries, Hot & Spicy Popcorn and Extra Crunchy Tortilla Nachos. These offerings will be launched via foodservice customers across Europe. Notably, leading foodservice and retail operators have already adopted the alternative protein segment that is projected to be a multi-billion-dollar category. In fact, the alternative protein segment continues to thrive.
Manufactured in Netherlands, the plant-based products are made using locally-sourced good quality ingredients. These products are non-GMO, non-palm oil, egg-free and contain no artificial colors, flavors or preservatives. Moreover, the packaging of the items is made of recyclable 60% bio-based plastic material and includes labeling in eight languages.
Tyson Foods believes that its capabilities in R&D and innovation coupled with international footprint and infrastructure places it well to be a market leader in alternative protein category in the European market. Moreover, management expects to leverage its deep capabilities to make plant-based protein more readily available at affordable prices worldwide.
Focus on Protein-Packed Brands Bodes Well
For fiscal 2021, USDA expects overall domestic protein production (chicken, beef, pork and turkey) to rise about 1% year over year. In the beef segment, USDA projects domestic production to grow about 3% in fiscal 2021. For pork, domestic production is likely to rise about 1%, per the USDA. In the Prepared Foods segment, the company intends to focus on responding to changing consumer behavior as it goes into fiscal 2021.
Though management expects food and protein demand to shift among different sales networks and witness short-term hiccups amid the pandemic, worldwide demand is expected to increase over time. To this end, Tyson Foods boasts a rich portfolio of protein packed brands that are growing rapidly across the globe. Additionally, the company has undertaken divesture of non-protein businesses (such as Sara Lee Frozen Bakery, Kettle and Van’s) to focus more on the growing protein-packed food arena.
Apart from this, the Zacks Rank #2 (Buy) company is steadily expanding fresh prepared foods offering, prompted by consumers’ rising demand for natural fresh meat offerings without any added hormones or antibiotics. In this respect, Tyson Foods’ buyout of Tecumseh (June 2018) is quite noteworthy. The deal has added the popular air-chilled Smart Chicken brand along with a variety of chicken sausages, fresh and deli-style chicken to Tyson Foods’ portfolio. Additionally, Tyson Foods is venturing into alternative sources for meat and protein products, evident from the investment in Memphis Meats.
Shares of Tyson Foods have dropped 0.6% in the past six months against the industry’s growth of 0.4%.
More Solid Food Bets
Lamb Weston LW, with a Zacks Rank #2, has a long-term earnings growth rate of 7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pilgrim’s Pride PPC, with a Zacks Rank #2, has a long-term earnings growth rate of 2.6%.
Campbell Soup CPB, with a Zacks Rank #2, has a long-term earnings growth rate of 1.4%.
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