Summer BBQ to help stimulate Tyson Foods’ return to stable growth, says GlobalData

Following today’s news (10 May) that Tyson Foods has released its Q2 2021 financials;

Carmen Bryan, Consumer Analyst at GlobalData, a leading data and analytics company, offers her view:

“Tyson Foods’ strong bounce back after a trying year in 2020 is largely due to consumers’ continued reliance on home cooking, which has seen them cooped up through the winter months and ongoing cautionary COVID-19 advice. As a result the company’s sales have been primarily carried by its retail channels.

“Although foodservice channels are reopening, giving an added boost to Tyson’s revenue, cautionary dining behaviour is expected to continue. Instead, retail channels will remain key as consumers look to take their BBQs out of the shed in preparation for the warm summer months.

“As many as 57%* of global consumers are still concerned about restrictions on socializing with friends and family, and 50% stated the same when asked about eating out at restaurants; casual occasions that can be enjoyed in the sun with friends and family such as BBQs will be a prominent factor to the success of meat or meat-alternative products this summer.

“Plant-based investments will also continue to help support Tyson Foods’ sales. Over the past few years, the company has been repositioning itself as a ‘protein’ company over ‘meat’, allowing it to enter the plant-based market and expand its portfolio. Its recent addition of plant-based hamburgers and sausages will help to capitalize on the summer trend while appealing to a wider range of consumers: with 60% of consumers globally citing health as their main reason to switch to plant-based alternatives for red meat.”

Data is from: GlobalData’s 2021 Q1 Consumer Survey, March 2021

* ‘extremely concerned’ or ‘quite concerned’ responses combined

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