Tyson, largest meat processor in the country, invests in fake meat
Beyond Meat burgers — plant-based patties made to resemble, sizzle and even bleed like meat — have the potential to wean wavering carnivores from animal-based proteins.
Encouraging such a trend would seem to pose a serious financial threat to Tyson Foods, the largest U.S. meat processor.
Except Tyson has a stake in Beyond Meat and could someday buy the California-based company. Another Tyson investment is Memphis Meats, a Silicon Valley lab-grown meat startup. Consumers aren't likely to see slaughter-free chicken or steak in the grocery store anytime soon, but Tyson is preparing for that possibility.
In the near future, alternative proteins won't take much of a bite out of Tyson's core business of beef, chicken, pork and prepared foods, which brought in more than $38 billion in revenue last year. But as more consumers shift toward foods they consider to be healthier and more sustainably sourced, Tyson's Chicagobased venture capital arm — a team of three men — wants to meet them there. Other food companies like Campbell Soup, General Mills and Kraft Heinz also have venture capital funds, a relatively new and growing trend in the traditionally stodgy processed food industry.
“If we are not aware of it and participating in our own disruption, we basically deserve what we get,” said Tom Mastrobuoni, chief financial officer for Tyson Ventures.
Tyson, like other giant food corporations, is using venture capital investments to partner with emerging food startups focused on sustainability and technology.