Tyson Foods eyes China and our New Global Middle-class investing theme

Tyson Foods eyes China and our New Global Middle-class investing theme

Noel White, the new CEO of beef, chicken and pork company Tyson Foods, is looking to capitalize on our New Global Middle-class investing theme as it considers overhauling its strategy in China. One of the key tenants in our Rise of the New Middle-class theme is the trade up in products, services, and other purchases, including food, that consumers will make as their disposable incomes rise. From Tyson’s perspective, tapping into this tailwind should drive revenue and profits on the back of rising protein demand in China and other emerging economies.

Tyson Foods Inc. is looking to expand internationally to help stabilize its business and reduce exposure to U.S. agricultural-market swings, its chief executive said.

The Arkansas-based company is considering acquisitions in new markets and revamping its strategy in China, where earlier investments in company-run poultry-farming complexes have struggled, said Noel White, who took over as Tyson’s chief executive officer at the end of September.

Tyson’s effort to rebuild its overseas presence is a way for the top U.S. meat company by sales to harness growing protein demand in developing countries as well as in established markets for meat, Mr. White said in his first interview since taking over.

A broader international presence would make Tyson less reliant on the ups and downs of the U.S. meat sector, where processors like Tyson, Pilgrim’s Pride Corp. and Hormel FoodsCorp. are grappling with low prices and growing meat supplies.

Source: Tyson Foods CEO Looks to Make International Acquisitions – WSJ

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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