Dive Brief:
- Tyson has named Tom Hayes, its current chief commercial officer, as the company's new president.
- Donnie Smith, who previously held the president title, will continue in his position as CEO.
- Hayes was chief supply chain officer at Hillshire Brands when Tyson acquired the company in 2014, and prior to that role, Hayes held a similar role as senior vice president and chief supply chain officer for Sara Lee North America.
Dive Insight:
Hayes' 27 years of experience in the CPG industry includes executive roles at Hillshire and Sara Lee (which spun off its meats business and renamed it to Hillshire Brands in 2012) and other roles in general management, sales, and marketing at companies like US Foodservice, Inc., ConAgra Foods, The Fort James Corporation, Stella Foods, and Kraft Foods. His career experiences in packaged foods and foodservice align with Tyson's shift toward offering more and packaged and prepared foods brands.
The 2014 Hillshire acquisition brought Hayes onboard but also added higher-margin prepared foods brands like Jimmy Dean sausages and Ball Park hot dogs to Tyson's portfolio. These higher-margin products have paid off for Tyson, which last month reported a 39% increase in quarterly profits and boosted its earnings outlook for the year.
Tyson's major company moves over the past few years have been positioning Tyson for growth, Smith said during the company's CAGNY presentation earlier this year. The focus has been to reframe Tyson's portfolio as "protein-centric" rather than "meat-centric," which was "a conscious choice ... that certainly opens up the aperture for opportunities in the future," Sally Grimes, chief global growth officer and president, international, for Tyson told Food Dive at CAGNY.
Hayes will continue to oversee Tyson's commitment to innovation, which includes a "three-year pipeline ... across all segments," Smith said on a recent earnings call. This innovation pipeline and expansion of packaged foods that align with consumer trends like protein and snacking will be integral to Tyson's growth.
Revenue continues to fall, though less than expected last quarter. Innovation-fueled top-line growth and the continued expansion of its e-commerce efforts could help Tyson sustain the profitability it's enjoying now while feed costs are low and meat supplies remain high.