As noted in With Pork and Beef Supplies Raising Some Concerns, Guess Who Wants To Serve You Some Faux Meat:
....This trip down Memory Lane brought to you by the April 13 observation:
...Back to the immediate issue, supply should be good through June but if the closed plants, and they are multiple across the industry, don't reopen, BYND is going to be in hog heaven....From FT Alphaville:
Beyond Meat’s profit-driven pricing power
Beyond Meat, the $7.8bn fake meat company which trades like a penny-stock, announced its first-quarter results on Tuesday evening.....MUCH MORE
All-in-all, they looked pretty good for the company whose blockbuster IPO confounded many investors. Revenues rose 141 per cent year-over-year to $97m, helping the company achieve a slim profit of $1.8m. It even steam-rolled its rivals post-lockdown, according to chief executive Ethan Brown, who on the ensuing conference call boasted:
During this period [Q1], Beyond Meat continued to own the top 4 best-selling SKUs in all plant-based meat and outpaced its closest competitor in terms of year-over-year sales growth by a factor of roughly 6x.Whether that justifies Beyond Meat’s current valuation of 23 times trailing revenues is for another article (short answer: no), but that’s not what we’re interested in today.
Furthermore, during the 4-week period ended March 22, 2020, in which retailers saw stockpiling by consumers as stay-at-home orders proliferated, sales of Beyond Meat products were above 233% year-over-year with velocity growth of 195%, outperforming the plant-based meat category as a whole, which rose 93%.
The past few weeks have seen a crisis envelop the US meat supply chain. Coronavirus has sabotaged US agricultural supply chains and production capacity. The food is there, but can either not be processed in a timely way or delivered to the parts of the market that need it. It’s got so extreme, that on Wednesday night Donnie from Queens promised to fix the meat shortage at Wendy’s, the American fast-food chain, which has been forced to take burgers off the menu at some locations.
Meat shortages present an opportunity for Beyond Meat and its competitors such as Impossible Foods to grab market share. Indeed, Brown said on the call it will look to price competitively over the coming months to lure consumers in....
