A Cell Based Tech Breakdown of Tyson Foods Inc (NYSE: TSN)
- Tyson exited Beyond Meat, prior to the IPO, of which they held a 6.5% stake.
- Investments in the cell based meat space total an estimated amount of $30 million.
- Cell based tech external investments are relatively small compared to Tyson’s overall market cap.
- Our Prediction: The alternative protein product lines that are scheduled to launch this summer will not incorporate cell based technology, and will closely resemble Beyond Meat’s product lines.
Since selling their stake in Beyond Meat, Tyson considerably reduced their external investment position in the alternative protein space for the time being. Tyson’s investment in Beyond Meat was $34 million, a 6.5% stake.
In 2016, Tyson created the New Ventures Fund a venture capital arm to the Tyson brand. Tyson New Ventures Fund = $150 million.
The Tyson New Ventures fund has made three investments in the cell based tech space that are publicly available. At this time, all Tyson New Ventures investments are in cell based meat.
- Future Meat Technologies: Tyson’s investment is undisclosed, but the total amount raised was $2.2 million.
- Memphis Meats: Tyson’s investment is undisclosed, but the total amount raised was $20.1 million.
- New Protein Fund – Tyson’s investment is undisclosed, but the total amount raised was $50 million. Temasek is the only other investor.
Our rough estimated total investments that Tyson has made out of the $150 million fund are $30 million. The $150 million fund represents about .68% of the total market cap of $22.14 billion.
Tyson plans to introduce its own alternative proteins brand(s) this summer. CEO Noel White stated in the 2019 Q2 earnings call, “We’ll be introducing products this summer and early in the next fiscal year, and we’re well positioned to capture growth in this space. We have a deep understanding of how to develop new products, brands and categories, and our distribution reach will allow us to move quickly into the marketplace.” Our prediction is that these products will NOT use cell based technology, and will be similar to the plant based Beyond Meat product lines, whereby ingredients are cleverly integrated into the product to make it look and taste like “real” meat. In addition, we predict they’ll follow suit with creative and modern packaging.
Tyson Personnel: Tyson has been actively hiring for roles within the New Ventures Fund. The job descriptions have included innovation in the form of developing new products with R&D, strategizing for product launches, and product packaging.
Tyson Strategy: As reported in their 2019 Q2 10-Q, “Our strategy is to sustainably feed the world with the fastest growing protein brands.”
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Disclosures:
- Cell Based Tech has no business relationship with any company mentioned in this article.
- Cell Based Tech is not a registered financial adviser, and this is not financial advice. Please conduct your own due diligence and consult a financial adviser before making investment decisions.
