Tyson Foods Inc. CEO Donnie Smith has been replaced as president of the company, part of a companywide shift away from commodities and toward branded products, Tyson announced Monday.
The board of directors unanimously voted to promote Tom Hayes, the former chief commercial officer responsible for all North American sales, to the position of president.
"As we look toward the future of our business and its next phase of growth, succession planning is the board's responsibility," said John Tyson, chairman of the board of directors. "We are focused on leaders with the right skills to help Tyson Foods capitalize on favorable market trends in the U.S. and abroad, continue improving our portfolio mix and margins, and drive innovation in our expanding range of branded products."
"Under Donnie Smith's leadership, Tyson Foods has delivered excellent results for shareholders and experienced significant growth," Tyson said.
Tyson spokesman Gary Mickelson said "Donnie will remain CEO and his responsibilities have in no way been diminished."
Hayes joined Tyson as part of the company's purchase of Hillshire Brands in 2014. He was chief supply chain officer at Hillshire, and before that, he served as a senior vice president and chief supply chain officer for Sara Lee North America.
Hayes' promotion is the latest of Hillshire's former employees making their way up Tyson's ranks. Tyson named Jason Nichol, a former vice president at Hillshire, to senior vice president of Tyson's Wal-Mart division.
Tyson's $7.7 billion purchase of Hillshire marked a significant investment for Tyson in branded products, and the prepared food segment, which includes the company's branded products, has been one of the highest growth sectors in recent quarters.
The prepared-foods segment netted $197 million during the first quarter of 2016, about a 23 percent increase from the same time the year before, according to required company filings.
"Hillshire brands as a company is a catalyst for a transformation that's happening at Tyson Foods," said Hayes at a presentation to investors in September. "We want to make and sell more branded, protein-centric foods than any company in the world, bar none."
Business on 06/14/2016