Beyond Meat wants to have further production or co-packing facilities outside its home market as the US plant-based burger and sausage maker looks to quicken the pace of its international expansion.
In May, the California-based manufacturer of the Beyond Burger announced plans to speed up delivery of its plant-based meat-alternative products to customers in Europe with a manufacturing agreement with Zandbergen in the Netherlands. The new facility is expected to be completed in the first quarter of 2020.
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Now it appears Beyond Meat wants to replicate this plan elsewhere. Speaking to analysts yesterday after Beyond Meat announced its third-quarter results, CEO Ethan Brown said: “We’re very fortunate to have a good partner there in Zandbergen and we are aggressively putting infrastructure in place with them to be able to serve the EU market, which we think is a very attractive one for us.
“More generally, if I could comment internationally, I have a strong conviction that we should be producing in the markets that we are selling in on a regional basis. And so you’ll see us continue to make investments globally and bringing production into place in the markets that are most attractive to us. So, we won’t – certainly won’t – be stopping with Zandbergen and you’ll see more behaviour from us in that regard.”
Brown said that in the company’s third quarter – the three months to 28 September – about 18% of Beyond Meat’s revenue came from international markets.
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“We think that trend will continue. It’s up quite a bit. It was up from about 4% in the third quarter of last year. So we want to continue to nurture the international market,” he said.
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By GlobalData“Like many, we believe that Asia is a very attractive market for us, and of course, as I mentioned, EU. So, you’ll see us continue to be aggressive there.”
In the three months to 28 September, Beyond Meat recorded net revenues of $92m, an increase of 250% year-on-year, while gross profit was $32.8m, compared to $5m. The former figure exceeded analysts’ expectations.
Net income was $4.1m, compared to a net loss of $9.3m in the equivalent period in 2018, while adjusted EBITDA was $11m compared to a loss of $5.7m.
Reflecting on the results, John Baumgartner, an analyst covering Beyond Meat for Wells Fargo, said: “2020 is expected to see an approximate doubling of co-packing capacity while 4Q20’s exit rate is expected to see protein supply capable of supporting $1bn of annualised net sales (incl.uding a diversified supplier base). We continue to expect that new capacity and aggressive distribution growth will maintain a positive bias to revenue through 1H20.”
