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To: Ron who wrote (46)6/8/2019 10:37:16 AM
From: Glenn Petersen
   of 193
Up 39% on Friday to $139.65. What a monster.

Beyond Meat says one overseas market has ‘desperate’ need for plant-based protein

Published Fri, Jun 7 2019 1:18 PM EDTUpdated Fri, Jun 7 2019 2:01 PM EDT
Eric Rosenbaum

  • Beyond Meat shares surged after its better-than-expected first-quarter results on Friday, as growth around the world for plant-based protein alternatives to meat exceeded forecasts.
  • The global region where Beyond Meat says the need is “desperate” for its products is Asia.
  • Even though beef has never been a staple in many Asian countries, Asia has the fastest-growth rate of beef consumption in the world. It also faces some of the world’s biggest environmental issues.

Beyond Meat plant-based burger patties.
Source: Beyond Meat

Beyond Meat is booming in the U.S., which has the highest level of animal-based meat consumption per person on a global basis and where meat is the largest category in the food industry, a $270 billion business. The U.S. opportunity is just getting started: Nielsen data shows Beyond Meat has just 2% household penetration in the United States.

But the company has said that the global opportunity is just as compelling — meat is estimated to be a $1.4 trillion market — and that is where some of Beyond Meat’s fastest growth may yet come.

Shares of Beyond Meat, already the best initial public offering of 2019, soared after its first-ever earnings report as a public company, and the opportunity in Asia is one that CFO Mark Nelson highlighted.

Responding to a question from an analyst on the quarterly earnings conference call about the international opportunity and how much of the growth it will drive going forward, Nelson said it is an important “but still pretty small percentage of our overall revenue.” He noted that Europe and Asia are “very significant” markets for its products and pointed to the fact that Europe already has a “very well-developed market” for plant-based proteins.

But it was the word he used to describe the Asian opportunity that was about as dramatic as CFO talk ever gets. “Asia has a desperate need for this. So I’m going to be very aggressive in going into those markets, and our team will be as well. ... Asia is absolutely a strong part of our strategy.”

Beyond Meat has been planning for international expansion since well before its public debut. It noted in 2018 that 10% of its consumer inquiries in the previous year were from international markets, a factor that contributed to its rollout across 40 countries. Beyond Meat is currently distributed internationally to through local partners in Australia, Chile, the European Union, Hong Kong, Ireland, Israel, the Middle East, New Zealand, South Korea, Taiwan and the United Kingdom, markets where the company said it “received strong inbound interest for our plant-based products.”

In March, Beyond Meat introduced its plant-based protein burger in Singapore. That followed the 2017 introduction of the Beyond Burger in Hong Kong. Among international markets, Australia is among Beyond Meat’s most penetrated to date. The company had said in its S-1 filing ahead of the IPO, “for several years we have maintained a presence and generated brand awareness in Asia through our local distributor, and expect further expansion in the region over time.”

Beyond Meat has previously cited research firm forecasts that the global market for plant-based meat will be worth $6.5 billion by 2023, with the fastest-growing market being the Asia-Pacific region. Allied Market Research data shows that though demand is highest in Europe and North America, the Asia-Pacific region is the fastest-growing market for the plant-based products, with demand forecast to increase at a compound rate of 9.4% a year until 2025.

In its IPO filing, Beyond Meat stated, “In markets excluding the United States, the amount of meat consumed has more than doubled in the past two decades from 120 million tons in 1997 to 280 million tons in 2017, according to the OECD.”

In 2017 and 2018, international sales represented only approximately 1% and 7% of Beyond Meat sales, but the company expects international sales to “grow substantially in the future ... and contribute an increasing share of our net revenues in coming periods.”

International is growing more quickly than the company expected, its management team said on the earnings call. It just signed a deal with Netherlands-based Zandbergen for its first production facility overseas, and Beyond Meat executive chairman Seth Goldman said on the call, “We have certainly seen growth in Europe happening more quickly than we anticipated. And so from our point of view, as Ethan [Brown, CEO] said, we want to be aggressive with production.”

Many factors at play in Asia

Many Asian markets were not historically places where beef was a staple on the diet — it still is not in many. But with a rising middle class, especially in China, beef consumption has been rising. In the early 1980s, China’s meat consumption per head was around 13 kilograms per year and has risen to 50 kg per person — over half the level in the U.S., according to data cited by Dora Marinova, director of the Curtin University Sustainability Policy Institute in Australia, in a recent Nikkei Asian Review article.

“Consumption has already surpassed sustainable levels in China,” she told the Nikkei. “From an environmental point of view, it has to go down to at least half of what it is.”

Some Asian players are moving into the space. In Japan, Otsuka Foods launched the market’s first plant-based protein burgers last year.

Asia’s growing population and appetite for protein is not just limited to beef, but historical staples like pork and seafood, and that will have major consequences for the globe.

A report from Singapore-based consultant Asia Research and Engagement forecasts that a rising Asian population, increasing incomes and the trend toward urbanization will result in a 78% increase in meat and seafood demand from 2017 to 2050, according to a Reuters report.

The report estimates that a land area the size of India will be needed for additional food production, while water use will double per year and greenhouse gas emissions spike. It also noted the use of antibiotics in the livestock industry will present greater risks for human and animal infection.

Euromonitor research from recent years shows that Asian animal protein consumption can vary widely based on income. Per capita meat, fish, and seafood consumption ranges from as law as 11 kg per capita per year in India to over 144 kg in Hong Kong. Hong Kong, where Beyond Meat introduced its burger in 2017, has 23 times the per capita annual disposable income of India.

In China, non-income factors have made beef more attractive. Pork industry safety scandals, public health campaigns designed to encourage the consumption of lower fat protein options, and recent bird flu epidemics led to beef and veal becoming the fastest-growing meat category in volume in recent years, Euromonitor found.

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To: Glenn Petersen who wrote (47)6/8/2019 1:44:58 PM
From: SI Ron (Crazy Soup Man)
   of 193
No one put up a board for that stock?

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To: SI Ron (Crazy Soup Man) who wrote (48)6/9/2019 10:20:13 AM
From: Glenn Petersen
3 Recommendations   of 193
zax put up the Impossible Foods board prior to the Beyond Meat IPO. Perhaps he should expand the title and scope of the board to include both companies. An Impossible Foods offering is inevitable. Even though they deny that they are considering it and have not had any problems raising private equity, the Impossible Foods people have to be seriously considering going public. Irrational exuberance does not last forever and they have a fiduciary duty to their shareholders to exploit the current market conditions. The pricing of the Beyond Meat left a lot of money on the table. The underwriters, who had to know the extent of the demand for the offering, screwed the company. Impossible Foods does not have to repeat that mistake.

Kudos to zax for recognizing the “meatless meat” trend.

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From: Ron6/11/2019 10:33:45 AM
   of 193
BYND nice pullback here on a downgrade.
Beyond Meat Announces 'Meatier' Burger for Summer

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To: Ron who wrote (50)6/12/2019 1:54:14 PM
From: zax
3 Recommendations   of 193
I've (for now) associated the BYND (Beyond Meat, Inc. 142.30 +12.90%) ticker symbol with this board as a temporary placeholder to give you folks an inkling of a clue as to the potential of an Impossible Foods IPO.

I have also made a change to the board introduction:

Old Text:

No IPO has yet been announced.

New Text:

No IPO has yet been announced. We'll use the BYND ticker with this board, for now, as no small hint to Pat Brown: If your also-ran competitor can do this outrageously well on the public market, why not make a go of it yourself? People are dying to give you their money and help you save the world. Think about all the talent you could acquire in your quest to save the planet when you can PRINT YOUR OWN MONEY.

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From: zax6/12/2019 7:55:19 PM
   of 193
Tonight I tried No Evil brand Italian Sausage, which my wife picked up for me at Whole Foods.

It is edible. It is spicy like real sausage, and the texture is weakly passable for meat. It has a bit of an unpleasant after-taste, sort of like the way certain older sugar substitutes have an unsavory aftertaste serving to remind you that you are eating something with an additive or imitation flavor. You get that "chemical-ish" experience.

I was able to finish my plate, but I won't be having this again.

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To: SI Ron (Crazy Soup Man) who wrote (30)6/13/2019 11:45:37 PM
From: Alex MG
1 Recommendation   of 193
You are right, vegans are a satanic cult

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To: Alex MG who wrote (53)6/14/2019 10:18:27 AM
From: zax
   of 193
Not sure that I buy into the conclusion of this study, but here it is, nonetheless...

Lab-Grown Meat Will Overtake Plant-Based Alternatives By 2040, Study Says

Cultured meat could overtake plant-based alternatives like Beyond Meat and Impossible Burger as early as 2040, according to a new report. The research, from consultancy firm AT Kearney, finds that meat grown in a lab from cells will ultimately become more popular than vegetarian food that replicates the taste of animal products. By then, most of the world's burgers will be entirely meat-free. The report claims that, over the next 15 years, the market will shift toward lab-grown meat as alternatives struggle to maintain their momentum from early innovation. Consumer preferences will also drive a shift to the lab-based approach, as the researchers argue that the similarity to meat drives commercial potential and that, ultimately, lab-grown meat will still taste and feel much more like the real thing.

These products will drive down meat consumption even as the whole industry expands, but scientists are unsure whether this will be good for climate change. University of Oxford research found that, while methane-producing cows are lambasted as a major source of greenhouse gases, the methane they produce only stays in the atmosphere for around 12 years. Carbon dioxide, which a lab would in theory produce in spades to power the production of cultured meat, can last for thousands of years. However, this week's report pushes back on this notion, and finds that meat alternatives are far more resource-efficient than conventional meat. When taken as a grain-to-meat ratio, animals only operate at around 15 percent efficiency. Cultured meat only needs around 1.5 kg of crops like soy, pease and maize to produce 1 kg of beef, resulting in a 70 percent conversion rate. Plant-based products need around 1.3 kg per kilo of "meat," resulting in a 75 percent conversion rate.

via SlashDot

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To: zax who wrote (54)6/14/2019 12:06:35 PM
From: Glenn Petersen
1 Recommendation   of 193
Taste will be a work-in-process. Look how long it took artificial sweeteners and no-sugar-added ice cream to get it right.

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From: Glenn Petersen6/21/2019 1:21:51 PM
3 Recommendations   of 193
The Fake Burger Face-Off — Impossible Foods Vs. Beyond Meat

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