NANTUCKET, Mass., June 21, 2016 (GLOBE NEWSWIRE) -- 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 Foods
Tyson 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.
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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
Source:Tyson Foods Inc