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October 29, 2019

Beyond Meat looking to extend international production facilities

US plant-based burger and sausage maker Beyond Meat has spoken about having further production facilities outside its home market.

By Leonie Barrie

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.

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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.

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.

“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.

“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.”

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Innovation Update Q2 2022: Meat and Meat Alternatives

Meat alternatives continue to push boundaries, as companies explore 3D printed, plant-based, and precision fermentation-based alternatives. As a result, shoppers are more open to experimental formulations that introduce new flavors to meat products, blur traditional food categories, or swap in new ingredient types. It is vital for their development that retailers acknowledge this range of emerging trends during these increasingly uncertain times. Brands must continue to understand how consumer needs and desires change, and offer a range of products that reflect the world around them, therefore developing purchasing and consumption decisions. Exciting non-traditional formulations are hitting the market - following the trajectories and target audiences of these launches will help other brands find their niche. Consult our report on Meat and Meat Alternatives, from the collection of >17,000 reports on GlobalData Explorer, to:  
  • Understand the current market dynamics of the Meat and Meat Alternatives Sector
  • Assess strategies implemented by companies to better penetrate the market
  • Understand the key themes in the market that these companies and their respective products appear to be targeting
  • Marketing / Advertising strategies being used by these players for specific products
  • Other segment-specific analysis (packaging, design, flavors etc.)
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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