In its latest move to diversify, Tyson Foods, America’s biggest meat processor, is investing in a techy food start-up called Tovala.
The Chicago-based startup has designed an internet-connected steam oven with an accompanying meal kit subscription service. Along with its investment of an undisclosed sum, Tyson has formed a partnership agreement with Tovala to collaborate on Tyson-branded meals.
This step outside Tyson’s traditional food industry markets follows an announcement last month that it invested in Memphis Meats, a startup which produces cultured meat without raising livestock or poultry. Memphis Meats has attracted much attention, as well as a group of high-prestige backers that includes Cargill, Bill Gates and Richard Branson. The Tyson funds will be used for product development, the company said.
Tyson had already been investing in a plant-based protein producer, Beyond Meat, since 2016. It took a 5% ownership stake to help the business expand its product portfolio and distribution. In December 2017, Tyson increased its stake in Beyond Meat by an undisclosed amount.
“We’re a protein company now and with that comes a whole host of new spaces to look at and opportunities to consider, if you think about that in the framing for what we’re going to ultimately focus on,” Justin Whitmore, Tyson’s Executive Vice President of Corporate Strategy and Chief Sustainability Officer, told Reuters.
While Tyson is now part of the growing meat alternatives segment of the food industry, Whitmore said the company’s deals with Memphis Meats and Beyond Meat do not mean Tyson is moving away from traditional meat. “Growth in protein implies there could be new alternatives emerging and that’s where you see some of our investments in the cultured and veg-based meat spaces and our protein space as well,” said Whitmore.
