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May 14, 2021

Tyson Foods to sell pet-treats business to General Mills

Tyson Foods is selling its pet treats business featuring the brands Nudges, True Chews and Top Chews to another US food heavyweight General Mills.

By Dean Best

The owner of the Blue Buffalo pet-food brand, General Mills is to pay US$1.2bn for the assets, which include a production facility in Iowa.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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Completion of the agreement, which is subject to regulatory approval, is expected to be completed by the end of its fiscal year, Arkansas-based Tyson said in a statement today (14 May.)

Tyson added its pet treats plant in Independence, Iowa, will provide meat ingredients to General Mills after the deal is concluded, while 300 workers employed at the site will transfer to the new owners.

The meat giant entered the pet-food category in 2010 with the launch of True Chews dog treats, followed by the Nudges and Top Chews brands in the next two consecutive years. The business generated sales of more than $240m in the financial year ended 3 April, the New York-listed company said.

General Mills’ pet-food division posted sales of $1.7bn last year out of group sales of $17.6bn. It acquired US business Blue Buffalo Pet Products for $8bn in 2018.

“We’re proud of the tremendous success of this business and the diligent work by our team to meet growing demand for high-quality pet treats,” Noelle O’Mara, group president of prepared foods for Tyson, said. “We believe the time is right to transition these great brands to an established pet food’s business where they will complement their existing portfolio.”

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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