Source: Chris Scott, MEATINGPLACE, 5/11/16


A program that offers Tyson Foods the opportunity to provide fresh proteins to an expanding online grocery program is part of a strategy to grow Tyson’s “non-store retail” presence, President and CEO Donnie Smith told analysts this week.

Smith reaffirmed Tyson’s plan to provide fresh proteins to the Amazon Fresh program, which already delivers grocery store items like meat and prepared foods in four markets: Seattle, New York, Los Angeles and Philadelphia. Tyson is expected to launch a line of “chef-inspired meal kits and premium proteins” called Tyson Tastemakers for home delivery by Amazon Fresh starting this fall, Smith confirmed. He did not provide additional details on the types of proteins that will be featured. 

Amazon began testing Amazon Fresh in its hometown of Seattle in 2013 and is moving toward boosting its competitive standing with other home meal-kit delivery outlets like Blue Apron and HelloFresh. The home delivery service is expected to generate $23.2 billion in grocery sales for Amazon by 2012, according to a recent report from Cowen & Co. The Amazon Fresh program costs consumers $299 per year to join and is expected to expand to more cities.

Smith first unveiled Tyson's upcoming relationship with Amazon Fresh at an investors’ conference in New York in March, describing plans to have the kits contain pre-cut, aged and marinated protein so that kit buyers only have to cook the meal. The e-commerce segment is expected to grow three times faster than the current traditional retail structure, Smith noted.

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