There’s some serious strategy involved in the latest Tyson Foods, Inc. investment, as the company now has a stake in Beyond Meat; a company that produces plant-based proteins, as an alternative to meats.
“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,” stated Monica McGurk, Executive Vice President of Strategy and New Ventures, and President of Foodservice, Tyson Foods.
Tyson now has a 5 percent ownership stake of the El Segundo, California-based company, according to a press release. Tyson’s investment will allow for the plant-based protein Beyond Meat to expand its portfolio and distribution. The move will also position Tyson Foods to remain at the forefront of consumer purchases by offering customers both meats and meat alternatives.
“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,” stated CEO and Founder Ethan Brown of Beyond Meat.
Eater reported that Beyond Meat’s portfolio gives consumers a realistic meat experience without involving actual meat itself, and the burgers even “bleed” beet juice. The company’s products are entirely plant-based, and as the Times noted, answers a growing segment for food that saw $4.9 billion in sales in a year, and fast-paced growth.
Although the terms of the agreement were not disclosed by either company, Tyson’s stock rose as news of the investment broke.
The investment was secured through a fundraising initiative by Beyond Meat, Beyond Meat also secured funding from investors including The Humane Society of the United States, Bill Gates, and Kleiner Perkins. Beyond Meat will remain a privately-held, independently owned company.
As consumer demand continues to inspire innovation in segments throughout the industry, stick with Deli Market News for the latest announcements and groundbreaking reports.