Dive Brief:
- Tyson has announced plans to build a $136 million additional processing facility in Green Forest, AR, across the street from one of its plants.
- The existing plant produces partially cooked chicken products for foodservice and retail customers. The new addition, connected to the existing plant by a corridor, will increase capacity because those products can travel a shorter distance for more processing.
- The new plant is expected to add about 85 jobs.
Dive Insight:
Tyson hasn't built any facilities in several years. This particular plant expands capacity, but it also cuts down on travel time and expenditures for processing, which will generate savings and boost profit margins.
Tyson also announced this week its appointment of former Coca-Cola exec Monica McGurk as senior vice president of strategy and new ventures. McGurk will help determine the optimal corporate strategy needed to guide the company into new territory as it shifts product development beyond meat to proteins in general.
Going from a "meat-centric" to "protein-centric" organization means establishing a growth strategy that has flexibility. It will need to evolve with the changing nature of both meat and plant-based proteins and their applications, particularly in functional and better-for-you foods. Snacking will undoubtedly play a major role in that strategy, as will e-commerce, another of McGurk's fortes.