Tyson Foods Inc. of Springdale said Monday that it has launched a $150 million venture capital fund, called Tyson New Ventures LLC, as it seeks to invest in innovative food companies and technologies.
The publicly traded meat processor (NYSE: TSN) said the fund is focused on "investing in companies developing breakthrough technologies, business models and products to sustainably feed a growing world population." The company said the fund will complement other investments in its core businesses: fresh meats, poultry and prepared foods.
"We intend to collaborate with promising food entrepreneurs who are pioneering new products and technology that are making meaningful changes and improvement to food systems," Monica McGurk, executive vice president of strategy and new ventures and president of foodservice for Tyson Foods, said in a news release.
"We believe we can accelerate the growth of startups through our capabilities in such areas as food and culinary research and development, sourcing, insights, customer relationships and distribution. By doing so, we hope to materially advance the state of the U.S. and global food system."
The company said the fund will focus on three areas: commercializing alternative proteins; combating food insecurity and food loss; and promoting "more precise and productive resource application, safety and consumer empowerment in the food chain."
The fund's first investment is in a company called Beyond Meat. Tyson Foods announced in October that it had taken a 5 percent stake in the plant-based protein producer, led by founder and CEO Ethan Brown.
Tyson said its investment in the company will help Beyond Meat expand its product portfolio and distribution. The deal is the latest among legacy food giants getting involved in smaller food startups. Beyond Meat products, which include plant-based hamburger patties and chicken strips and single-serve prepared meals, are already available in 11,000 stores.
Tyson New Ventures will be based in Chicago and led by Mary Kay James, who has been named vice president and general manager.
James previously worked as managing director of DuPont Ventures, was chairperson of the National Venture Capital Association's Corporate Venture Group and an advisory board member to Global Corporate Venturing.
Tyson said James' team will seek startups "that complement Tyson Foods' existing business and product development efforts" and focus on alternative proteins, elimination of food waste and "leveraging innovative trends in technology."
"This fund is about broadening our exposure to innovative, new forms of protein and ways of producing food, while remaining focused on our core fresh meats, poultry and prepared foods businesses, which are also experiencing tremendous consumer demand and growth," McGurk said.