There had been many vegan meat alternatives for quite some time now, but based on consumer reviews,4 the taste and texture of … I am a Wealth Advisor at Alpenrose Wealth Management, advising a global clientele on multi-generational wealth management, with a passion for impact investing. While there is strong statistical correlation between growing income and growing meat consumption, overall meat consumption has not significantly decreased in the US and in Europe. It is worth mentioning dairy and egg alternatives in this piece, seeing how successful some of these companies have been and how much funding they have been able to raise. 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. Mainly, that the company is on track to achieve its ultimate goal, which is to become the dominant global protein company. The company is forecasting sales of $210 million for this year, breaking even. As an extension of this work, I’m particularly excited about companies that offer innovative solutions to reduce the impact that agriculture has on human health, climate change, water scarcity, and animal welfare. Memphis Meats is creating a meat alternative in the lab much like its competitors, but is using animal stem cells to do so. This article analyzes Beyond Meat’s stock performance, the history of the company, the market for meat alternatives, and some of its competitors. Beyond Meat opened for trade July 2 at about $145 per share. The current stock price of $150 gives a market capitalization of $9.109 billion, or a P/S ratio of 43.3x, which is higher than what Google saw when it went public. I am a Wealth Advisor at Alpenrose Wealth Management, advising a global clientele on multi-generational wealth management, with a passion for impact investing. Establishing partnerships with global QSRs (McDonald's, Dunkin Donuts, Denny’s, etc.) As previously predicted, the multi-billion dollar food powerhouses are moving rapidly into the retail space with more offerings coming soon. Memphis Meats does not yet have a commercially viable product. A 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. It is now backed by investors such as Khosla Ventures, Google Ventures, and Bill Gates. Many are starting to change their meat consumption, for environmental and health concerns. Beyond Meat's latest rival Driven by a desire to be more health conscious and thoughtful about environmental issues, many consumers have been increasing their consumption of … This market has garnered increasing interest from investors, who have invested more than $16 billion in the space, including $13 billion in 2017 and 2018 alone. All Rights Reserved, This is a BETA experience. Ethan Brown believes the key to taking Beyond Meat to new heights is innovation, plain and simple. While the meat-alternative market is only a fraction of the entire market for meat, particularly when taking a global perspective, the growth rates it has seen certainly do bring it to the attention of meat executives. However, can the company live up to the hype and satisfy its investors? By continuing to use this site you agree to our. Finally, one point worth highlighting is that meat alternatives are still very expensive compared to traditional animal meat. Is this different than other recent food trends? Fake meat is a highly processed food. This caused revenues at the company to increase from $1.5 million in 2017 to $15 million in 2018. She also has hands-on experience with startups, helping CyNation and EstateGuru raise funding and expand to the UK. Yes, their stock is down big from its high earlier this year. Meat Consumption in the US Historically (Left) and in 2017 (Top Right) vs. Globally (Bottom Right). Impossible Foods is creating “bleeding” burgers and is currently working on replicating whole cuts of meat. Brown strongly believes that continuously innovating will be the reason Beyond Meat stays ahead of the growing competition and remains the market leader well into the future. A recent poll by Gallup puts the number of vegans in the US as approximately 3% of the population, a small increase compared from the 2% reported in 2012. It's clear that the alternative meat space is hot. (above articles posits exactly that) I would say that it is the biggest risk for the company and the whole fake meat niche. A key strength of Beyond Meat was that it offered by far one of the more appealing innovations to the meat alternative, the vegan industry.
2020 beyond meat competitive advantage