Meat + Poultry - October 2016 - 12

BUSINESS NOTES

TYSON'S 'CORE 9' CONTINUES TO GROW
Tyson Foods' "Core 9" retail packaged product lines,
which feature the Tyson, Jimmy Dean, Hillshire Farm,
Ball Park, Wright, Aidells and State Fair brands, continue
to grow and gain momentum, according to a report from
Tom Hayes, Tyson Foods' president, at the Barclays Global
Consumer Staples Conference Sept. 8.
"The investments we made in the Core 9 to spur
volume growth are generating returns," Hayes said. "We
continue to outpace retail food and beverage. Tyson
Core 9 is leading in volume performance among the top
10 consumer packaged goods retail food manufacturers,
and Tyson Foods is one of only three companies to show
growth in the latest quarter. We're growing sales volume,
dollar sales, and market share," he said.
Executives from Tyson, including Hayes and CEO
Donnie Smith, told investors at the Barclays conference
that the company is producing higher, more stable
earnings and sales volume growth.
"As stated on our last earnings call, our adjusted
earnings guidance for fiscal 2016 of $4.40-4.50 per share
is 40 percent more than last year and represents a fouryear compound annual growth rate of approximately 22
percent, and we're confident we can achieve high single
digit growth in fiscal 2017," Smith said.
Smith told investors that Tyson Foods' shareholders
have seen increasing dividends and share repurchases
totaling 31 million shares in the previous 12 months
through Aug. 8. "Beyond dividends and share buybacks,
we'll use our substantial cash flows to invest in our
business or make strategic acquisitions," he said.

KROGER HATCHES ITS OWN
BRAND OF CAGE-FREE EGGS
The Kroger Co. is working to make cage-free eggs more
affordable for its customers. The Cincinnati-based
supermarket chain introduced a new Kroger-brand line of
cage-free eggs Sept. 6.

"Kroger-brand Cage-Free Eggs are now available in
our family of stores nationwide," said Gil Phipps, Kroger's
vice president of corporate brands. "More customers are
looking for an affordable cage-free egg option. Our goal is
to help our customers migrate to the cage-free category by
offering an affordable alternative to conventional eggs."
In March, the company announced its goal is to transition
to a 100 percent cage-free egg supply chain by 2025.
"In order to ensure a smooth transition by 2025, we
need to start attracting customers to cage-free eggs now,"
said Mel Bomprezzi, Kroger's vice president of grocery
merchandising. "We remain committed to working with
our suppliers during this transition in a way that ensures
eggs are readily available, safely produced, and affordably
priced for all of our customers."
Kroger has offered cage-free eggs for many years
including the Simple Truth and Simple Truth Organic
brands. In 2015, 15 percent of the eggs sold at the
supermarket were cage-free (the industry average in 2015
was 9 percent).

NATIONAL BEEF TO EXPAND
BOXED BEEF SHIPPING
Just over one month after announcing similar plans at
its Dodge City, Kansas, plant, National Beef Packing Co.,
LLC, announced on Aug. 30, it will expand its boxed
beef shipping capacity at its plant in Liberal, Kansas. The
$8 million project includes investments in palletizing
equipment, sorters, a crane and a new shipping lane while
also increasing storage space.
Dennis Boyles, vice president and general manager,
says the expansion is in response to a growing number of
requests from customers wanting boxes that are smaller
and weigh less.
"This capital project will position us to more efficiently
deliver the products customers want, when they want
them," Boyles said in a statement.
The company announced a similar project in late
July for its Dodge City plant, which included plans for a
$30 million investment to increase boxed beef shipping
capacity. That project is expected to be completed by
December 2017, while the project in Liberal is planned for
completion in late spring 2017.

CARGILL FORMS JOINT VENTURE IN INDONESIA

MEAT+ POULTRY | 10.16 | www.meatpoultry.com

Rob - Fotolia / Adobe Stock

Cargill has partnered with an Indonesian agri-food company
to produce and supply fully cooked poultry products in
Indonesia. The company has entered into a 60/40 venture
with So Good Food, a wholly-owned subsidiary of
Indonesian agri-food company Japfa, according to a Cargill
company release. The two companies will also produce

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Meat + Poultry - October 2016

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