This Little Veggie Went to Market, From Tyson

The CEO of Tyson Foods Inc. of Springdale is pleased with the response to the company’s Raised & Rooted brand of “chicken” nuggets, he says.

The word “chicken” is in quotation marks because the nuggets are made with pea protein, bamboo and egg whites. It’s not vegan but it’s certainly not your ordinary chicken nuggets.

Tyson took the product to market a few months after ending its partnership with Beyond Meat, a company that makes plant-based food products. Tyson Ventures, Tyson’s venture capital arm, had invested $23 million in Beyond Meat.

Noel White, the CEO, said Tyson would expand the product line to 7,000 retail stores. The company also announced it would launch the Raised & Rooted burger — made with beef and pea protein — in select markets this year.

“Since our last earnings call, we’ve nearly doubled our retail distribution of Raised & Rooted nuggets to more than 7,000 stores and expanded into food service,” White said during the company’s quarterly earnings call on Nov. 12. “This month, we began shipping our new Raised & Rooted blended burger made with Angus beef and plant protein. We have a deliberate go-to-market strategy for our alternative protein products. They must taste good and they must be healthier alternatives to other products already in the marketplace.”

Tyson’s entry into the alternative protein market isn’t a solo act. Other companies such as Kroger, Hormel and Perdue Foods are hopping in.

Burger King, the fast-food home of the Whopper hamburger, made news when it started selling the Impossible Whopper, a plant-based burger supplied by Impossible Foods of Redwood City, California.

The burger was so well received that Burger King is testing three more Impossible burgers for its menu.

One might think that someone interested in a non-meat protein meal might choose somewhere other than Burger King for lunch, but advocates say it is about offering options.

Tyson said its alternative proteins are a response to market demand from meat-eating consumers.

“We are committed to growing both our traditional and alternative protein businesses, where we see upside for both based on strong and continued interest in protein in all its forms,” Tyson said in a statement in response to emailed questions; the company said to credit a spokesman.

“Some people position alternative protein in opposition to the meat industry, but the reality is the growth is coming from consumers that are buying meat and plant-based protein. Our investments as well as own product development in this space are about ‘and’ not ‘or.’”

Changing Eating Habits

Peas are the backbone of Tyson’s Raised & Rooted products, and they are a crop commodity whose popularity has soared in recent years.

Peas, along with lentils, dry beans and chickpeas, are “pulse crops” that grow well in colder climates. They are considered great off-season crops in the upper Plains and northwest United States.

Pulse crops are high in protein and low in saturated fats, making them a healthier diet choice in addition to being a non-meat product. Tim McGreevy, the CEO of the USA Dry Pea & Lentil Council in Moscow, Idaho, said pulse crop acreage has increased nearly 400% in the past two decades, and that’s not just because Americans love their hummus, made from chickpeas.

McGreevy said he was at a conference at Montana State University in Bozeman and the cafeteria had a specific station for allergen- and gluten-free burgers made with lentils.

“We have seen significant demand, especially in our domestic market,” McGreevy said. “Frankly, it is an exciting time to be in the pulse industry. It’s not just the meat alternatives. The demand on college campuses is for real. There is a huge change in how we are eating, and it is being driven by the younger generation.”

Tyson reported annual revenue of $42.41 billion in fiscal 2019 on the back of its beef, pork and chicken segments. Alternative protein revenue wasn’t specified but it has a long way to go until it reaches the status of Tyson’s big three.

“Vegans and vegetarians still represent a relatively small percentage of the total population,” the company’s spokesman wrote. “The more meaningful growth we’re seeing is people looking to add plant protein to their diets. These are primarily meat eaters seeking more protein variety and flexible choices. Given our current infrastructure, we do not need to invest as much as many competitors to be profitable.”

Earth Friendly

While Tyson says its product line is about presenting options, Impossible Foods founder Patrick Brown said his reason for creating his company was to save the earth from unsustainable animal-based food production.

Impossible Foods says producing its burgers requires 87% less water and 96% less land while generating much less pollution. McGreevy said that if continuing demand requires more and more pulse crop production, he’s confident the country could support 40 million to 50 million acres of production, much like soybeans and wheat.

Tyson hired Justin Whitmore as its chief sustainability officer in 2017 and named John R. Tyson, great-grandson of Tyson founder John W. Tyson, to the position this year. Whitmore now leads Tyson’s alternative protein business.

“Our goal is to produce protein in multiple forms as sustainably as possible to meet growing demand in the U.S. and around the world,” the spokesman said.

Professor Marty Matlock is the executive director of the University of Arkansas Resiliency Center in Fayetteville and studies the interaction of ecosystems with growing demands of populations. He said more research is needed to determine what impact growing more peas and raising fewer cattle would have on the environment.

“Is it better for the environment or not? There is still some question about that,” Matlock said. “I’d say it’s not worse and, by some metrics, it may be better for the environment but not absolutely better. Some people are selling this as a beef alternative to save the planet but beef represents 7% of greenhouse gas globally.

“Your mother always told you to eat your peas; this is a way we are finally getting kids to eat their peas. Choice is a good thing, diversity is a good thing, diversity in our diets is a good thing.”

Some research has suggested that vegan food sales could hit nearly $12 billion by 2021. U.S. pulse crop exports to India totaled 400 metric tons before the tariff war “turned off the spigot,” McGreevy said.

“Plant protein will play a role, but so will traditional proteins like beef, pork, and chicken,” the Tyson spokesman wrote. “Our focus is on creating the most sustainable supply chain possible across all protein. Our vision is bigger than a single product or sustainability measure. We’re looking across food systems in their entirety to create holistic solutions that drive change and make protein possible for more people.”