Tyson Foods Launches $150M Alternative Protein and Food Sustainability VC

We are slowly going to a world where plant-based food and meatless meats are gaining ground with consumers for health and environmental reasons. However, it seems companies like Tyson Foods still have an ace up its sleeve.

The company, almost synonymous with the word meat given its chicken, beef, and pork expertise, wants to create a venture capital firm focused on making alternative forms of protein and food sustainability.

According to Forbes, this was announced just this week. The $150 million venture capital fund called Tyson New Ventures will focus on companies that are developing "breakthrough" technology and business models. 

The fund's first investment appears to involve Tyson's five-percent stake in Beyond Meats that develops burgers and other "meats" from vegetables. 

Tyson executive president of strategy Monica McGurk said this is an exciting time for the company as it's being exposed to a fast-growing segment of the protein market.

According to Reuters, she said the new fund will broaden the company's perspective and exposure to produce new forms of protein and remain focused on its core fresh meats, poultry and prepared foods business.

According to USA Today, she also expressed the company's willingness and intention to "collaborate" with food entrepreneurs that want to focus their efforts that can change the existing food system. This is especially in areas such as food and culinary research and development, sourcing, insights, customer relationships and distribution.

Tyson New Ventures will be based in Chicago and run by Mary Kay James, given the title of vice president and general manager. She was originally the managing director of DuPont ventures where she looked for opportunities to take equity positions in companies that focus on agricultural biotech, food and beverage supplements.

Regardless, Tyson is not the first to make such a move. For instance, General Mills launched 301 Inc last October and has taken positions in companies such as Beyond Meat, Kite Hill (alternative dairy), and Tio Gazpacho (soup-in-a-bottle). 

According to Dow Jones VentureSource data, VC firms have already invested $420 million in food and agricultural companies during the first three quarters of the year. Last year, the investments totaled $650 million.