Tyson To Fund Innovation In Non-Meat Protein Food Category
Zacks Investment Research | Dec 05, 2016 09:15PM ET
Meat processor Tyson Foods Inc. (NYSE:TSN) plans to adapt itself to cater to the growing demand for meat substitutes. As part of this strategy, it has set up a venture capital fund worth $150 million to invest in companies that develop these products.
The new venture fund named Tyson New Ventures LLC will invest in alternative forms of protein and food sustainability and will complement the company's continued investments in innovating its core fresh meats, poultry and prepared foods businesses. Additionally, the new venture will focus on developing technologies to reduce food wastage.
Notably, the Springdale, AR-based meat processor recently bought a 5% stake in a plant-based protein producer, Beyond Meat. Management has marked this takeover as its first step toward stepping up investment in meat substitutes.
The company’s endeavor to expand its portfolio for meat substitutes is laudable as it is a growing sector. A recent study has shown that per capita consumption of meat, particularly high-protein red meat, has witnessed a decline in the developed countries over the years. Increasing health consciousness of the people, change in dietary plans and risk of outbreak of animal diseases are leading to low consumption of meat products. Amid this scenario, the meat substitute market is expected to witness substantial growth.
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