![]() For example Beyond Mince in Chili sin Carne can be easily substituted by smoked tofu and the meatballs by falafel.Īs for the Beyond Burger itself, company's main product, apart from well-known competition from players like Impossible Foods, new competition is emerging from the supermarket chains, which introduce their own plant-based burger patties at a fraction of Beyond Burger's price. Most of them are cheaper than Beyond Meat products and have been known to customers for some time already. Potential substitutes include soy, tofu, tempeh, lupin protein, oat flakes, jackfruit, chick peas, to name a few. ![]() meat market, for some customers who would like to consume less meat, would be fine with a different taste of substitute products. This in our view constitutes only a very small niche of the $270b U.S. ![]() Beyond Meat's target audience are people who enjoy the taste of meat, however would like to make a healthier or more environmentally friendly choice in favor of plant-based substitute. The company's product range is quite limited and you will not find a Beyond Meat steak or roast beef at the moment. The company has recently launched Beyond Chicken Tenders and also produces sausages. Beyond Meat Products in Retail Outletsīeyond Meat specializes in processed foods that imitate the taste of ground beef products such as burger patties, meatballs and ground mince. In addition to CAPEX and R&D, Beyond Meat also has to increase its working capital, which reduces the free cash flow the company generates (to be discussed further in the DCF section). As described above, some of the facilities opened were not fully operational in Q3 2021, which could be an explanation for the sluggish sales growth. In addition to that, the company entered into an investment agreement to manufacture plant-based products under the Beyond Meat brand in China, which commenced trial production in Q1 2021.Īll in all as of Q3 2021 Beyond Meat increased its manufacturing capacity by 150-170% y-o-y, theoretically enabling the company to increase its Q3 sales by $140m-$160m, however, BYND revenues rose only $12m or 13% in the period. ![]() In late 2020 the company acquired its first European production facility in Enschede, the Netherlands, which completed its trial runs in Q2 and Q3 2021. in Columbia, Missouri and Devault, Pennsylvania. The majority (91.5%) of Beyond Meat's in-house manufacturing facilities are located in the U.S. The company's total manufacturing facilities comprised $197m on the balance sheet as of Q3 '21. In the past year the company had to invest large amounts both in its R&D (~$60m p.a.) and CAPEX (140m p.a.) to build new production facilities. Beyond meat cannot sell higher volumes of its product without incremental cost, which tech companies could do. Which means that to generate sales the company has to increase its production facilities first. Beyond Meat is a packaged food producer, not a tech companyīeyond Meat is a fancy, trendy and a pretty small packaged foods producer. If you look on the surface of it, how much would you be willing to pay for a company with $500m in revenues, which loses $120m per year? Beyond Meat ( NASDAQ: BYND) is currently valued at $4b (8x Mcap/Sales), which prompted us to look deeper into the company and business model to see what we could potentially be missing. ![]()
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