Maybe after going beyond its traditional protein comfort zone by acquiring a 5% stake in fake meat company Beyond Meat, Tyson Foods (NYSE: TSN) developed a taste for it: The chicken, beef and pork processor is now launching a venture capital fund, Tyson New Ventures, that will invest as much as $150 million in high-tech products and services, including alternative proteins and elimination of food waste.
A number of consumer-goods companies have hit on the idea of financing next-generation productions through an in-house VC arm. Cereal maker General Mills launched 301 Inc. in 2015, which earlier this year took a stake in Kite Hill, a nut-based milk producer, while Kellogg announced this past summer it was starting up eighteen94 capital to invest $100 million in food ingredient pioneers.
In February, Campbell Soup said it too wanted to invest $125 million in start-ups through its new VC fund, Acre Venture Partners. It’s made six investments already, ranging from $2.5 million in Spoiler Alert, a start-up that helps companies manage unsold food inventory, to $70 million in Juicero, a maker of home cold-pressed juicing systems.
It’s not clear what sorts of businesses Tyson will invest in, though given its Beyond Meat plant-based protein stake, it’s probable that much of it’s interest will continue to be directed at alternative protein sources. The company says it will help “fuel the future of food.”
The decision is also notable because it follows Tyson Foods weak fourth-quarter earnings report and the decision by CEO Donnie Smith to step down at the end of the year.
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