Tyson Foods is launching a $150 million venture capital fund dedicated to startups that have the potential to revolutionize the food industry. This endeavor is part of Tyson Food's strategy to support sustainable growth and innovation in a domain that affects the entire population of the globe — food.
The fund, which became active Dec. 5, targets a variety of high potential companies working on issues related to the production, transport and consumption of food, centered on three categories.
New Sources Of Proteins, Less Waste And Empowerment For The Consumers
First, the fund is interested in innovative companies that work on finding alternative sources of proteins for humans, which will provide healthy, humane and delicious choices for consumers. Such creative solutions may include vegetarian alternatives, lab-grown meat or even insect-based products. This does not mean, however, that Tyson Foods' best-known brands will be replaced by the innovations.
"We look at [meat alternatives] as an 'and,' not an 'or,' " compared with Tyson's conventional meat business, noted Monica McGurk, Tyson's head of strategy. In fact, Tyson Foods is even looking into acquiring some of these promising companies and integrating them and their innovations.
The second category of companies that could raise the interest of the fund includes those working on solutions to reduce waste, such as innovative packaging. Last, the fund targets companies working on developing the internet of food, with the aim of increasing food safety and customers' level of empowerment.
A Strategy For The Future
Such an endeavor is not new in the industry. Giants such as Campbell Soup Co. and Coca-Cola Co. also launched venture capital endeavors, competing against the Silicon Valley veterans. Overall, venture capitalists invested $647 million in food and agriculture in 2015, while 2016 saw a $420 million increase in the first three quarters.
Tyson Foods is one of the biggest food companies in the world, being recognized as a leader in pork, chicken and beef, as well as a variety of meat-based products and desserts. It owns famous brands such as Jimmy Dean®, Sara Lee®, Tyson®, Aidells® and State Fair® and has an extensive network of distribution in the United States and 130 other countries. Founded in 1935 by John W. Tyson, the company has about 114,000 employees in over 400 facilities. The company is dedicated to its core values and as a result strives to be faith-friendly, safe and dedicated to animal welfare and environmental protection.
