Tyson Foods Will Launch Meatless Products This Summer

03:11 05/13/2019

Tyson Foods TSN , the world's second largest processor and marketer of chicken, beef, and pork after JBS S.A, will be launching meatless products starting this summer.

The company, which once invested in Beyond Meat, announced last week that it will be making its own plant-based meat substitutes.

Beyond Meat BYND  recently made its debut on the NASDAQ and saw a gain of 163% on its first date of trading. The company had the biggest market debut so far of 2019.

Tyson Foods CEO Noel White told analysts on the quarterly conference call on Monday that the plant-based product will launch this summer by the company on a limited basis. It will then have a wider rollout in October and November.

Shares of Beyond Meat fell about 6% at the open after Tyson's announcement.

White also stated on the call, 'Our earnings of $1.20 per share, and a 6.3% operating margin demonstrate the strength of diversified business model. The prepared foods segments results were a Q2 record, and the Beef and Pork segments executed well despite several significant weather events. Although parts of our Chicken segment had challenges, we are past what is typically our toughest quarter and we're driving changes to improve our results.'

'As we move ahead with the integration of Keystone foods, I continue to be encouraged by the opportunities we see both domestically and internationally. The integration process has gone well and we're leveraging the international operation and the team's expertise, as we strengthen our capabilities. We're confident in our ability to achieve our announced synergies as we improve efficiencies and optimize supply chain and production resources.'

Beyond Meat’s CEO, Ethan Brown, told CNBC that the company is trying to capture the meat industry’s customers.

According to Bloomberg Intelligence, Beyond Meat's success will push companies like Kellogg Co., Conagra Brands Inc. and Kraft Heinz Co. to spend more on plant innovation.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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