Recent leadership changes and reorganization at Tyson Foods Inc. are evidence the nation's largest meatpacker is serious about its investments in the production of protein products that don't come from animals.
Upcoming announcements and restructuring plans at Tyson were detailed in email messages obtained by the Arkansas Democrat-Gazette. Sources that work in different segments of the company verified the accuracy of the messages.
"While we continue investing in our core meat protein businesses, we're also committed to incremental growth in alternative proteins," said Noel White, Tyson's president and chief executive officer, in an email sent companywide on Monday.
The email detailed the departure of Sally Grimes, Tyson's prepared foods president, and other management changes, including a new alternative protein role for Chief Sustainability Officer Justin Whitmore.
In addition to the sustainability job, Whitmore has been named executive vice president of alternative proteins. This role will lead "all aspects of our alternative and emerging proteins growth platform," the company said. Whitmore works closely with different teams throughout Tyson's prepared foods, sales, distribution and research and development teams and reports directly to White.
"I don't see a direct correlation between that and sustainability," said Alan Ellstrand, associate dean of the Walton College of Business at the University of Arkansas, Fayetteville, when asked about Whitmore's additional role. Sustainability is an initiative that should be driven through the company rather than just having a division, Ellstrand said.
"I'm curious to see whether that's a long term structure or presumably it becomes big enough that that's the only role," he said. "It's hard to know."
Ken Shea, a senior food and beverage analyst at Bloomberg Intelligence, saw Whitmore's additional role as a "big mark of change" for Tyson. In years past, the Springdale company has invested in new businesses focused on plant-based and cell-based products designed to look, feel and taste like meat or poultry. But this move suggests that Tyson is thinking about alternative protein as it relates to operations rather than just minority interests, Shea said.
When everything is settled, two people will report directly to Whitmore: Kevin Igli, senior vice president of sustainability and chief environmental officer; David Ervin, vice president of emerging proteins. Donnie King, Tyson's group president of international business, in the role of chief administration officer, will report directly to White.
While alternative proteins is a growth opportunity for companies and a "big deal" for Tyson, Shea said the market "is already kind of crowded" and raised concerns of Tyson "cannibalizing their own sales."
Tyson, however, does not see it that way. According to the emails, Tyson is using all its resources -- manufacturing, sales, distribution, etc. -- to "grow a new business within Tyson Foods." In the weeks ahead, new products in the alternative-protein space will be announced. Whitmore will oversee the business in his new role.
Other management changes and vacancies were mentioned in the emails. George Chapelle will be the new chief corporate services officer and report directly to King. Onika Williams will be the new vice president of chief of staff and work directly with White. Scott Stillwell, the vice president of food safety quality and assurance, will retire in early March after being with the company for 30 years.
Grimes, who joined Tyson through the 2014 acquisition of Hillshire Brands, will be leaving the company after a replacement is found and trained to take on the role of president of prepared foods. At Tyson, "she played an important role -- from sharpening our corporate purpose and identity, to growing Prepared Foods into a $9 billion business," White said in the email.
Sales in Tyson's prepared foods division, which includes products under brands like Jimmy Dean and Ball Park, have doubled the past four years and make up more than 20 percent of the company's earnings, according to its most recent quarter results.
"Going forward, Sally plans to remain in the Chicago area and spend more time with family," White said in the email, adding later, "We wish Sally all the best and thank her for her many contributions."
Tyson plans to use an executive recruiting firm to help identify Grimes' successor, according to the emails. Internal and external candidates will be considered.
Business on 02/27/2019