The alternative-meat market is an extremely lucrative sector, with Beyond Meat’s (NASDAQ: BYND) incredibly successful IPO proving the demand for these products is strong.
However, new competitors are entering the market, with one of the food industry’s largest companies, Tyson Foods (NYSE: TSN) announcing a rival pea-protein burger that would compete with Beyond Meat.
Tyson foods also used to be an early investor in Beyond Meat but ended up selling it’s stake before the company went public due to its plans to offer its own alternative meat products.
Unlike Beyond meat, Tyson foods are taking a slightly different approach to their alternative-meat products. Tyson said that they will be blending vegetable protein with animal protein as it’s initial product launch.
“The Blend” beef-vegetable burger patty will have 40 percent few calories than a traditional hamburger, while not compromising the taste of the patty as much as a pure vegetable option.
“Today’s consumers are seeking more protein options so we’re creating new products for the growing number of people open to flexible diets that include both meat and plant-based protein,” Tyson CEO Noel White said in a news release. “For us, this is about and—not or.” The company added in a news release that it also planned to produce a 100 percent plant-based option. “While most Americans still choose meat as their primary source of protein, interest in plant and blended proteins is growing significantly,” added Noelle O’Mara, Tyson Food’s CMO.
While the market for alternative-meat products remains somewhat of a small, niche sector, it’s currently growing at an exponential rate.
As such, most analysts aren’t too worried about overcrowding in the sector as there will be enough room for multiple companies to compete with each other.
Regardless, shares of Beyond Meat did fall a little in response to today’s news, dipping around one percent in today’s trading session.
On the other hand, Tyson foods saw it’s stock inch upwards around the same amount in response to the news announcement.
Tyson Foods Company Profile
Tyson Foods is the largest U.S. producer of processed chicken and beef. It’s also a large producer of processed pork and protein-based products under the brands Jimmy Dean, Hillshire Farm, Ball Park, Sara Lee, Aidells, and State Fair, to name a few.
Tyson sells 90% of its products through various U.S. channels, including retailers, foodservice distributors, restaurants, and noncommercial foodservice establishments, such as schools, healthcare facilities, and military bases.
In addition, 10% of the company’s revenue comes from exports to Canada, Mexico, Brazil, Europe, China, and Japan. – Warrior Trading News
Beyond Meat Company Profile
Beyond Meat Inc is a food company based in the United States. It offers a portfolio of revolutionary plant-based meats. The company has developed three core plant-based product platforms including beef, pork and poultry.
Its flagship product is The Beyond Burger, is designed to look, cook and taste like traditional ground beef. It generates revenues primarily from sales of its products, including
The Beyond Burger, Beyond Sausage, Beyond Chicken and other plant-based meat products. Its customers include mainstream grocery, mass merchandiser and natural retailers, as well as restaurants and other foodservice outlets mainly in the United States. – Warrior Trading News