Shares in food group Tyson Foods (TSN) were flat as a pancake today despite its decision to stop using the controversial ingredient High Fructose Corn Syrup from its products.
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2025 Goal
The company, whose brands include Tyson, Jimmy Dean and Hillshire Farm, said its goal was to stop using High Fructose Corn Syrup, Sucralose, BHA/BHT and Titanium Dioxide in the production of branded products in the U.S. by the end of this year.
Tyson said it was taking another “proactive step forward in our mission to bring high-quality food to every table in the world, safely, sustainably and affordably now and for future generations.”
Earlier this year Tyson Foods removed petroleum-based synthetic dyes from its domestic branded products. The ingredients being removed are FDA approved and safe to use.
However, the ingredients have been in the cross-hairs of U.S. Health Secretary Robert F Kennedy Jr. His “Make America Healthy Again” (MAHA) movement blames artificial ingredients for chronic childhood diseases like diabetes and obesity.
RFK Pressure
Kennedy has been urging companies to alter their food formulations to remove processed ingredients such as artificial colors and seed oils. Kennedy is concerned about the high amount of sugar consumed in the American diet and advises people to “eat whole food.”
The MAHA commission released a report this week calling for the U.S. government to review chemical additives in packaged products and define ultra-processed foods. Adding to the pressure, legislators in California, the largest U.S. state by population, are voting on a bill that would regulate ultra-processed foods as soon as this month.
Back in the Summer, drinks giant Coca-Cola (KO) said it would add a new soda beverage made with real cane sugar this fall.
Coca-Cola currently uses high fructose corn syrup for its drinks in the U.S. but following pressure from President Trump who said cane sugar would be “just better”, it agreed to make the new drink.
Tyson will be hoping its move to remove fructose from its meats will add some much-needed fizz to its share price. It is down nearly 10% in the last six months – see above.
Is TSN a Good Stock to Buy Now?
On TipRanks, TSN has a Moderate Buy consensus based on 2 Buy and 5 Hold ratings. Its highest price target is $75. TSN stock’s consensus price target is $62.29, implying a 13.32% upside.
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