Tyson Foods Views C-stores as Integral in Moving More Chicken

The chicken supplier sees convenience retailers as the ideal place to offer fresh prepared food.

November 04, 2013

SPRINGDALE, Ark. – Tyson Foods wants to be more than the go-to chicken vendor at grocery stores—it wants to secure a place in the foodservice department of convenience stores, Bloomberg Business Week reports. The beef and chicken supplier has begun to expand its line of prepared foods available to convenience stores.

Many gasoline stations and convenience stores are enlarging—or even adding—prepared foods, a testament to the increasing numbers of customers who want to buy such offerings when they fill up their tanks. “Tyson wants to increase their value-added and prepared-foods business to become more like Hormel, to get to the higher [stock] multiple,” said Bryan Agbabian, a portfolio manager for Allianz Global Investors.

According to IBISWorld, sales at U.S. c-stores without gas pumps jumped an estimated 5.2% each year starting in 2008 through 2013. Sales at grocery stores and traditional supermarkets dropped 0.4% during that same time period.

Tyson is hoping its seasoned and breaded partially or fully cooked foods will bump up its yearly earnings per share by 10% on average. The company is testing new dishes that can be quickly reheated at convenience stores. The target audience is mothers, said Eric Le Blanc, Tyson’s vice president of marketing for deli and convenience-store foods.

“The number-one thing that’s important to her is, ‘Will I be proud to serve this to my family?’” said Le Blanc. “We have to convince her” the answer is yes.

The company also is working to up the number of hot snacks and entrees available in convenience stores, such as ready-to-eat charbroiled burgers and a Cajun tortellini dish. “Convenience stores want to upgrade their food and image,” said Greg Luchak, a principal food scientist at the Discovery Center, Tyson’s test kitchen. “They want to become a food destination.”

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