Plant-based meat as a business by Beyond Meat

Plant-based meat company revolutionizing the traditional food market. The Beyond Meat food scientists build meat from plants which taste & look similar to traditional meat. Company’s products targeted not only to vegetarians but also to meat eaters who wish to explore entirely new food palette.

I’m living in India which ranked №1 in the world due to number of vegetarians (38%). What’s surprising here I haven’t seen that much demand for meat look like plant-based alternatives. Main demand for plant-based meat comes from development counties.

Beyond Meat established in 2009 in the USA. Only in 10 years company became legendary and main inspiration for competitors (Tyson Foods, Kellogg, Kroger, Nestle, Conagra Brands, Impossible Foods, etc). Plant-based products:

  1. Plant-based burger patties.
  2. Plant-based ground beef.
  3. Plant-based sausages (Brat Original, Italian Hot).
  4. Plant-based beef crumbles (Feisty, Beefy).

For plant-based burger patties used next ingredients: Water, Pea Protein Isolate, Expeller-Pressed Canola Oil, Refined Coconut Oil, Rice Protein, Natural Flavors, Cocoa Butter, Mung Bean Protein, Methylcellulose, Potato Starch, Apple Extract, Salt, Potassium Chloride, Vinegar, Lemon Juice Concentrate, Sunflower Lecithin, Pomegranate Fruit Powder, Beet Juice Extract (for color).

As we can see ingredients list quite long because the product has to imitate fiber, taste, look of real meat. The Company follow 4 main ideas: improve human health, positive impact on climate change, addressing global resource constraints, improve animals welfare. In 2019 global plant-based meat market is estimated to reach $12.1 billion and projected to grow at a CAGR of 15% every year.

Company is rapidly growing but constantly depending on pea protein manufacturers (extra risk). Beyond Meat products are in high demand which put extra pressure on manufacturing facilities. In order to satisfy growing demand Company partnered with supermarkets, restaurants (TGI Friday’s, Bareburger), fast-food chains (Dunkin, McDonald’s).

Beyond Meat financial situation is improving. But company never declared or paid dividends on capital stock and will not pay dividends in foreseeable future. This done to retain all earnings in company for future expenditure.

All financial data in this article form 10-Q (29 June, 2019), filed with United States Securities and Exchange Commission. On May 6, 2019 company completed IPO of common stock (listed as BYND). Shares traded on NASDAQ Global Select Market and sold on IPO at $25 each.

On screenshot presented share movement, 52 week high is $239.71. For three months ended on June 29, 2019 retail net revenue $31.1 million; restaurants & food service revenue $33.1 million; net revenue $61.2 million. Earnings per share (EPS) are in loss zone.

Company’s revenue for 3 months is $67 million, gross profit is $22 million, loss from operations is $2.1 million, net loss is $9.4 million.

Beyond Meat business model will turn this company in the conglomerate because of rising demand & awareness.

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