Beyond Meat (NASDAQ:BYND) went into 2019 as one of the most anticipated initial public offerings on the market. Shares of the company ended up skyrocketing shortly after going public as investors jumped at the chance to get involved in the growing alternative meat market.
However, as is the case with many companies, this coronavirus pandemic ended up throwing a wrench in Beyond Meat’s plans. More specifically, Beyond Meat has been planning to expand in China for a while, especially since the nation is one of the leading meat-consuming countries in the world.
However, this pandemic has completely halted those plans, with the company having just announced it will be starting up two new manufacturing facilities in China after all this time.
Beyond Meat went on to state that it’s going ahead with its previous Chinese expansion plan in spite of these delays, announcing the development of two manufacturing facilities around the Shanghai area. If all goes well, both plants will be operational within the next 12 months.
“China is one of the world’s largest markets for animal-based meat products, and potentially for plant-based meat,” said Ethan Brown, Beyond Meat’s CEO. “We are delighted and confident that after several months of productive and collaborative discussions, we will partner with the JXEDZ to develop two production facilities, including one of the world’s largest and technologically advanced plant-based meat factories. We are very impressed by the capabilities and vision of the JXEDZ and they are the ideal partner for us in this vitally important country and market.”
Other alternative meat companies have been targeting China as well. Impossible Foods is another rival to Beyond Meat that sees China as a major market opportunity, thanks in no small part to the nation’s massive population. At the same time, a major swine flu outbreak in China ended up culling a large portion of the nation’s pork herds. Considering that pork is a mainstay in Chinese cooking, alternative meat products could be in more demand now then they would have been many years ago.
Shares of Beyond Meat ended up jumping around 7% in response to the news. While there are competitors, Beyond Meat is currently leading the way when it comes to its Chinese presence. Its next biggest rival, Impossible Foods, still needs to secure regulatory approval from the Chinese government before it is able to operate and sell its products in the country. That gives Beyond Meat a crucial head start in order to secure its first-mover advantage in this market.
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
