Tyson Foods Positioned to Thrive in a Dynamic Food Market
September 06 2017 - 12:11PM
As a growth company with protein packed brands and broad innovation
capabilities, Tyson Foods, Inc. (NYSE:TSN) occupies a unique space
among the top U.S. food companies.
“We believe we are fundamentally different than other food
companies,” Sally Grimes, Tyson’s group president, prepared foods,
told investors today at the annual Barclays Global Consumer Staples
Conference. Grimes said competing effectively in growing spaces has
been a primary driver for Tyson Foods.
“Protein has risen to the top of all desired health attributes
in food,” she said. “The volume growth for high protein food looks
a lot different than growth for food in general. We bring
differentiated capabilities to this growth space. We add value, by
building brands and innovating continuously in categories consumers
want and in categories customers are focused on.”
Grimes said the raw, chilled and freshly prepared foods in the
perimeter of the store have become “retail’s growth frontier” as
consumers seek fresh, less processed foods, ease and
simplicity.
“The perimeter of the store – and what it represents – is the
center of our business,” she said. “Our sales growth in the
perimeter is 70 basis points ahead of the categories in which we
compete and 270 basis points ahead of the total perimeter. A mix
advantage and a performance advantage are powerful tailwinds
propelling us toward continued growth.”
Tom Hayes, Tyson Foods’ president and chief executive officer,
said the company is on track for another record year for earnings
as it nears the end of its 2017 fiscal year. “Looking to fiscal
2018, we expect topline sales growth of about 6 percent to
approximately $41 billion as we grow volume, improve our sales mix
to higher value products and benefit from a full year of
AdvancePierre Foods in our portfolio.”
Hayes said sustainability will play a key role in the company’s
strategy. “We will work hand in hand with some of the world’s best
thought leaders and problem solvers to drive change and develop
science-based targets for improvement as we simultaneously solve
for healthier food, healthier animals, a healthier environment, a
healthier workplace and healthier communities. In doing this, we’ll
earn the right to a healthier bottom line.”
Hayes said the company has generated momentum in its
sustainability efforts this year, and continued progress will be
made through strong business performance, financial fitness and the
ability for sustainability initiatives to fund themselves over
time.
“We expect to grow volume, sales, profits and our people,” Hayes
said. “By delivering results and improving continuously, we’ll
sustain the company and the world for future generations.”
About Tyson FoodsTyson Foods Inc. (NYSE:TSN) is
one of the world’s largest food companies and a recognized leader
in protein. Founded in 1935 by John W. Tyson and grown under three
generations of family leadership, the company has a broad portfolio
of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®,
Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods
innovates continually to make protein more sustainable, tailor food
for everywhere it’s available and raise the world’s expectations
for how much good food can do. Headquartered in Springdale,
Arkansas, the company has 114,000 team members. Through its Core
Values, Tyson Foods strives to operate with integrity, create value
for its shareholders, customers, communities and team members and
serve as stewards of the animals, land and environment entrusted to
it. Visit www.tysonfoods.com.
Forward-looking StatementsCertain information
contained in the press release may constitute forward-looking
statements, including but not limited to statements relating to (i)
consumer preferences and expected demand for certain products that
we produce, (ii) our ability to innovate, (iii) expected sales,
volume, and sales mix improvements, and (iv) and expected benefits
from the company’s sustainability efforts. These forward-looking
statements are subject to a number of factors and uncertainties
which could cause our actual results and experiences to differ
materially from the anticipated results and expectations expressed
in such forward-looking statements. We wish to caution readers not
to place undue reliance on any forward-looking statements, which
speak only as of the date made. Among the factors that may cause
actual results and experiences to differ from anticipated results
and expectations expressed in such forward-looking statements those
factors listed under Item 1A. “Risk Factors” included in our Annual
Report filed on Form 10-K for the period ended October 1, 2016 and
subsequently filed Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
To download the free Tyson IR 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.
Media Contact: Gary Mickelson, 479-290-6111
Investor Contact: Jon Kathol, 479-290-4235
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