Tyson Foods Retail Packaged Brands Gaining Momentum
June 21 2016 - 5:07PM
Executives from Tyson Foods, Inc. (NYSE:TSN) today told investors
at the Jefferies 2016 Global Consumer Conference that the company
is executing well and selling more branded, protein-centric foods.
“We’re investing in our retail packaged brands, and we’re seeing
the payoff,” said Tom Hayes, who was promoted to president of the
company last week. “Weekly sales data show that volumes in key
categories are gaining momentum,” he said, citing Ball Park® hot
dogs, Jimmy Dean® breakfast sausage and Hillshire Farm® dinner
sausage as examples.
Hayes said a key factor in Tyson Foods’ improved performance in
recent years has been higher, more stable margins in the company’s
Chicken segment.
Noel White, president of Tyson’s poultry division, said a new
business model was needed to achieve satisfactory returns, even in
times of commodity market volatility.
“We’ve fundamentally changed how we operate our chicken
business,” White said. “First, we optimized our cost structure.
We’ve taken more than $1 billion in inefficiencies out of the
business since 2009.”
White went on to explain the company utilizes a broad range of
customer pricing agreements that serve to minimize the volatility
of grain input costs. In addition, Tyson has upgraded its product
mix into more branded, value-added items and created the “Buy vs.
Grow” strategy of production, significantly de-commoditizing the
business. Delivering high quality products and customer
service are also key, he said.
“We strive to continually earn the trust of our customers that
we will deliver for them, that we will innovate for them and that
we will help them grow their businesses,” White said.
About Tyson FoodsTyson Foods, Inc. (NYSE:TSN),
with headquarters in Springdale, Arkansas, is one of the world's
largest food companies with leading brands such as Tyson®, Jimmy
Dean®, Hillshire Farm®, Sara Lee®, Ball Park®, Wright®,
Aidells® and State Fair®. It’s a recognized market leader in
chicken, beef and pork as well as prepared foods, including bacon,
breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and
toppings, tortillas and desserts. The company supplies retail and
foodservice customers throughout the United States and
approximately 130 countries. Tyson Foods was founded in 1935 by
John W. Tyson, whose family has continued to lead the business with
his son, Don Tyson, guiding the company for many years and
grandson, John H. Tyson, serving as the current chairman of the
board of directors. The company currently has approximately 113,000
Team Members employed at more than 400 facilities and offices in
the United States and around the world. Through its Core Values,
Code of Conduct and Team Member Bill of Rights, Tyson Foods strives
to operate with integrity and trust and is committed to creating
value for its shareholders, customers and Team Members. The company
also strives to be faith-friendly, provide a safe work environment
and serve as stewards of the animals, land and environment
entrusted to it.
To download Tyson Foods’ free investor relations app, which
offers access to SEC filings, news releases, transcripts, webcasts
and presentations, please visit the App Store for iPhone and iPad
or Google Play for Android mobile devices.
Forward Looking Statements
This release includes forward-looking statements as well as
historical information. These forward-looking statements are made
as of the date of the release and include statements relating to
margin expansion, brand performance, projected earnings, projected
compound annual growth rate, and capital strategy. Actual results
may vary. Factors that could cause actual results to differ from
those in the forward-looking statements include, but are not
limited to: certain categories in which our products are sold do
not grow or the sales of our products fall below our expectations.
Additional information regarding these and other risks is included
in Item 1.A. “Risk Factors” on our Form 10-K for the period ended
October 3, 2015. Tyson Foods does not assume any obligation
to update the information contained in this communication (whether
as a result of new information, future events or otherwise), except
as required by applicable law.
Media Contact: Gary Mickelson, 479-290-6111
Investor Contact: Jon Kathol, 479-290-4235
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