Plant Eat Plant World – The Average Joe
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    Plant Eat Plant World


    October 1, 2020

    Can you pass the Turing taste test: Telling the difference between plant-based meat and real meat?

    On Sept. 29, Beyond Meat ($BYND), a plant-based meat producer, announced an expanded distribution with Walmart to offer their plant-based meat products to 1,600 more stores nationwide.

    Cookin’ up a global storm

    2020 has been a pivotal year for Beyond Meat. Consumers turned to plant-based meat as meat producers struggled with supply chain issues. Meat processing plants became COVID hotspots due to their close-contact working environment while plant-based meat factories were in the clear.

    Beyond’s stock has more than doubled in 2020 and up next on its menu, global expansion:

    Jun. 11: Launched its first European manufacturing facility to aggressively push into the European market.

    Aug. 27: Launched its e-commerce store to sell directly to customers.

    Sept. 8: Announced its plans to build a factory in China to expand its Asian presence.

    But don’t get caught up in all the positive announcements. Challenges that Beyond Meat will face include:

    • High pricing… Plant-based meat is often double the price of real meat but Beyond has a solution: lower selling prices, which it has executed throughout 2020, and reduce production costs by making supply chains more efficient and negotiating better deals with suppliers.
    • Competition… Beyond Meat was the first to market with a plant-based meat product but close competitor, Impossible Foods, and traditional meat producers are starting to catch up.

    Just what investors ordered: Growth

    Having generated just under $300m in 2019 sales, Beyond makes up only 0.13% of the $232b US meat industry. They’ve got a long way to go to catch up to the largest meat producer in the US, Tyson Foods ($TSN), who generates over $40b in sales.

    It’s not easy becoming the master chef but here’s Beyond’s plans to cook up the perfect plant-based burger:

    • International growth… The company is aggressively targeting China, who makes up nearly 1/3 of the world’s meat consumption. In Sept., Beyond Meat became the first international plant-based meat producer to begin building a production facility in China.
    • Plant-based everything… Beyond Meat is looking to dominate all types of meat products with Beyond beef, burgers, sausage and meatballs… It even convinced KFC to sell a plant-based fried chicken.

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