![]() The company is forecasting sales of $210 million for this year, breaking even. Even though sales are growing at the company, the sales multiple implied by the stock price is out of line with anything seen in the food sector. The stock has since stabilized at around $150, which still results in incredibly impressive returns for its investors. In fact, its IPO was the best performing one for a company listing for over $200 million since the financial crisis of 2008. At one point, the stock even broke the $200 barrier, trading at 800% of its initial offering price of $25. The stock was initially offered at $25 and immediately jumped in price, exchanging hands on May 2nd at $45. An interesting report from CB Insights breaks down the costs. This gives credence to the idea that the company can convert clients with more traditional diets, and not just vegans, to their products.įinally, one point worth highlighting is that meat alternatives are still very expensive compared to traditional animal meat. He lists the impressive environmental advantages as 90% fewer greenhouse gas emissions, 99% less water, 93% less land, and 46% less energy for the production of Beyond Meat compared to regular meat.Īnother interesting point is that the company targets a mainstream market: They quote a statistic highlighting that 93% of shoppers at Kroger in the first half of 2018 that bought a Beyond Meat product also bought regular meat. In a letter included with the prospectus for BYND’s IPO, Ethan Brown revealed that he sees the nutritional benefits of meat, but that he aims to remove the connection of meat to the animal that it came from, seeing it instead as “meat by composition and structure-amino acids, lipids, trace minerals, vitamins, and water woven together in the familiar assembly of muscle, or meat” and pushes for a technological innovation in production that bypasses the animal and uses technology to achieve the same composition and texture. The mission of the company is focused on plant-based meat alternatives, using pea and other plant protein isolates. Beyond Meat’s Historyīeyond Meat (NASDAQ: BYND) was founded in 2009 by Ethan Brown, a Californian entrepreneur with an interest in environmental topics, who is also a vegan. However, can the company live up to the hype and satisfy its investors? This article analyzes Beyond Meat’s stock performance, the history of the company, the market for meat alternatives, and some of its competitors. Nothing captures the zeitgeist more than the Beyond Meat company IPO in May 2019, which has been one of the stand-out financial events of the year. The appeal of this for investors is very clear: It creates an entirely new potential market. The success of initiatives like “ Meatless Monday” speaks to this trend, which is spreading amongst younger people.Ī new crop of meat-alternative and other plant-based foods companies are emerging while veggie burgers and sausages have long existed, what makes these new companies interesting is that they are trying to replicate meat synthetically, creating a product that resembles meat very closely and, thus, will be marketed primarily toward non-vegans and vegetarians. They can be targeted by jokes like, “If you are a vegan who does crossfit, which do you tell people first?” On the other hand, many are starting to change their meat consumption for environmental and health concerns. Vegans, those who follow a plant-based diet, can have a bad reputation. What was once a niche habit, preserve of staunch environmentalists, has officially become mainstream. The number of vegan people globally has increased rapidly and includes very famous celebrities, like Beyoncé, who have at times followed a plant-based diet. One of the most notable cultural developments of recent years has been the boom in veganism, sparking endless think pieces and getting covered even in economic-focused publications like the FT. Listen to the audio version of this article
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