Tyson Foods Inc. announced on Monday its acquisition of organic chicken processor Tecumseh Poultry LLC. The terms of the deal have not been disclosed. The purchase includes Tecumseh’s air-chilled Smart Chicken brand.
Tecumseh Poultry was founded in 1998 and produces air-chilled, fresh chicken, as well as deli-style chicken and a variety of chicken sausages. The air-chilling process involves using cold air to cool chicken during processing, while the most common method used by the U.S. chicken industry is water-chilling. Both methods are monitored by USDA inspectors and are considered safe.
Tecumseh Poultry’s operations include two plants located in Tecumseh and Waverly, Nebraska, as well as live operations. Tyson Foods currently plans to operate Tecumseh Poultry as a separate, wholly owned subsidiary and expects to retain its approximately 600 employees including operations staff, sales teams and management.
“Consumers want choices. More and more consumers want options for fresh, organic food that fits their lifestyles,” said Eric Schwartz, chief marketing officer of poultry for Tyson Foods. “The Smart Chicken brand is a leader in this key organic category, and the category’s growth makes this acquisition a strategic fit for Tyson Foods.”
According to Nielsen’s Perishables data, organic fresh chicken grew sales volume by 8.6 percent from 2016 to 2017, more than four times the rate of conventional poultry. Tecumseh Poultry’s processing capabilities and its focus on quality have given the Smart Chicken brand a leading postion in the fastest-growing U.S. category of fresh chicken.
“This is a well-run company with a solid customer base that’s earned consumer loyalty. We’re excited for Tecumseh to continue to produce quality chicken while providing the business the scale and resources it needs to cotinine growing,” said Doug Ramsey, group president of Poultry for Tyson Foods.
