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Beyond Meat Q1 2021 conference call – CEO Ethan Brown

The management has a seven-factor strategy to achieve mainstream consumption and those are capacity expansions, new technologies (yes, that is exactly what I want to eat – haha), new campuses, stronger commercialization, lower costs, increase marketing and hire more people.

My worry is that if they do not become mainstream, then you are in a pickle if you are an investor. The management is positive about Beyond becoming a mainstream food option and is investing accordingly. Market adoption line if Beyond’s products pass the enthusiasts. As you use up the enthusiasts for such products, it is very likely your margins will need to be much lower to reach others in the mainstream market which is Beyond’s goal as a company. This is extremely important for our business analysis because it might have huge impacts on BYND’s future margins. Personally, the taste difference is really subtle, and even as I will certainly not use the above as food, we just tested it, but no point in paying 50% more for practically the same. Now, about the taste, here is my comment: It could be that market chains put Beyond’s products on the shelves so that people try them out, compare and then go for the private label for 50% of the price. private label, one next to the other in shop Thus, the basis of Beyond’s value is the brand and the taste, which is the next step in our research.Įven if my wife says plant-based burgers are not food but just a food product and you would actually be healthier if you ate organic minced meat, we have tested and compared Beyond’s burger and Spar’s 50% cheaper counterpart. Ingredients Beyond Meat vs private label – Beyond price 7 EUR, Spar price 3.5 EUR – Source: Author (voda is water)Īpart from small differences where Beyond Meat uses aromas while Spar uses spices or a mix or rice and bean proteins versus just bean proteins, there isn’t actually a significant difference. The comparative verdict on an ingredient basis is that there is practically no difference except in the price that is half of Beyond’s. My wife, who is a healthy food specialist ( Naturally Ana channel) immediately analyzed Beyond’s ingredients and compared them with the private label from the supermarket’s own production. To make things worse, it was next to a few competitors and all the competitors have 50% lower prices on what seems the same product. We went to the store that offers the product in my country (Slovenia) to do proper field research and found the following: Beyond Meat shelf example – right upper corner – Source: Authorīeyond Meat’s package was squeezed on the top shelf and actually hidden. To do a deeper analysis on whether Beyond Meat is just a fad or might actually be a trend, we have even tested the product. We as investors have to also look at margins, competition and long-term trend sustainability because you want to invest in a strong trend while a fad is certainly something you don’t want to invest in. However, that is just one part of the story. The trend for plant-based foods is very positive and growing fast. Food categories plant based in Europe – Source: ProVeg According to ProVeg’s research, plant-based substitute meat products come in second only after milk. There is plenty of room to grow as meat substitutes are highly sought in the environment. If the growth continues, things will be positive for Beyond Meat too. The plant-based food market is growing fast and has grown 400% over the past two years in Europe where meat substitute products are already at 2.5% of the actual meat market. Beyond Meat’s distribution channel – Source: Beyond Meat Investor Relations Market Overview Beyond Meat products – Source: Beyond Meat Investor Relationsīeyond Meat has expanded extremely fast over the last years and is now well distributed internationally too. Here is just an example of Beyond Meat’s meat substitute products. Beyond Meat business overview – Source: Q4 2020 Investor Presentation

The company has been expanding fast through partnerships like McDonalds, Starbucks, KFC but that also means it will likely be accepting lower margins given that we all know companies like MCD are very tough to negotiate with. Beyond Meat expansion example – Source: Beyond Meat Investor Relations Here below are just examples from the most recent news releases of a new Beyond Burger 6 pack for Canada, a Beyond Italian Sausage for Pizza Hut and more Beyond Meatballs for Walmart. BYND stock analysis Beyond Meat Business Overviewīeyond Meat has been growing fast in the past and is constantly expanding its products range and markets.