Tyson Foods invests in plant protein company, shares rebound
by October 10, 2016 5:00 pm 217 views
Tyson Foods has taken a 5% ownership stake in plant-based protein company Beyond Meat based in El Segundo, Calif., joining The Human Society of United States and Bill Gates who also have invested in the meat alternative company.
The meat giant declined to give the financial terms of the deal except to say the investment was made through an fundraising initiative by Beyond Meat which will remain an independent, privately-held company led by founder and CEO Ethan Brown. Tyson Foods said its investment in the plant protein company will allow expansion of its product portfolio and distribution network.
“This investment by Tyson Foods underscores the growing market for plant protein. I’m pleased to welcome Tyson as an investor and look forward to leveraging this support to broaden availability of plant protein choices to consumers,” Brown noted in the release.
Tyson Foods management has often discussed the desire to reach more consumers, particularly Millennials, and its push to provide more convenience foods for busy families. This investment will allow Tyson to tap into the vegetarian and vegan circles.
“We’re enthusiastic about this investment, which gives us exposure to a fast-growing segment of the protein market. It meets our desire to offer consumers choices and to consider how we can serve an ever-growing and diverse global population, while remaining focused on our core prepared foods and animal protein businesses.” said Monica McGurk, executive vice president of strategy and new ventures, and also the president of Foodservice for Tyson Foods.
Beyond Meat already sells its plant protein products in more than 11,000 stores nationwide.
Tyson Foods shares (NYSE: TSN) regained 4.06%, or $2.75, in heavy trading Monday to close at $70.50. The rebound comes after the shares tumbled Friday following a market downgrade from Pivotal Research analyst Tim Ramey based on his concerns about claims of price fixing being litigated in an Illinois district court. Tyson and other brokerage firms have said the suits are baseless.