As part of its global growth strategy, Tyson Foods Inc. has reached an agreement to invest in the foods division of Grupo Vibra, a Brazilian producer and exporter of poultry products. Once completed, the deal will give Tyson Foods more flexibility in serving customers in key global markets. Terms of the agreement were not disclosed, and the transaction is still subject to approval by Brazilian regulators.
“This investment will enable us to access poultry supplies in Brazil to meet the growing needs of Brazilian customers and of priority demand markets in Asia, Europe and the Middle East,” said Donnie King, group president, international & chief administration officer for Tyson Foods. “It’s part of our strategy to develop a more flexible supply chain and mitigate the volatility of our previous model, which relied primarily on U.S. exports.”
Since last year, Tyson Foods has expanded its global presence through the acquisition of Keystone Foods, which includes operations in China, South Korea, Malaysia, Thailand and Australia, and BRF’s poultry businesses in Thailand and Europe. Grupo Vibra currently serves customers in Brazil as well as more than 50 countries around the world.
“This agreement is the result of the mutual trust between our two companies and the goal of both companies to expand globally,” said Flavio Sergio Wallauer, chairman of the board for Grupo Vibra. “We also both believe in the importance of constantly adding value to our products. For us, this includes continuing to grow, innovate and strengthen the position of our brands, Nat and Avia.”
Over the next five years, it is estimated that nearly 98% of protein consumption growth will happen outside the U.S. “That’s why we’re growing our business outside the U.S.,” said King. “As the world population continues to grow, Tyson will grow with it.”
Tyson Foods currently generates $7 billion in international sales annually. This includes $5 billion in U.S. export sales and about $2 billion in in-country revenues.
“Tyson will add know-how and new business opportunities to speed up our growth,” said Gerson Luís Müller, chief executive officer of Grupo Vibra. “This partnership will be important to further develop our businesses in Brazil and foreign markets, granting access to new technologies and investments mainly in R&D. We will capitalize on a global distribution network to reach new markets. We trust that this agreement will strongly contribute to improve the quality of our services, adding new products to our portfolio offered to clients and consumers.”
As part of the agreement, Grupo Vibra will spin-off its genetics multiplication business, Agrogen, into a separate company.