Beyond Meat, Inc. (BYND - Free Report) , a much acclaimed plant-based meat products company, stated that it will be rolling out its latest product — Beyond Meatballs — across grocery stores this week. The move is well aligned with the company’s plans to broaden its product lineup. Moreover, with rising health consciousness, plant-based meat alternatives are gaining prominence. This provides opportunities for companies like Beyond Meat to diversify and grow.
Investors seem to have taken the announcement positively, as shares of the company rose 6.2% in yesterday’s trading session. This Zacks Rank #3 (Hold) company’s shares have more than doubled in the past six months compared with the industry’s growth of 32.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Meatballs Likely to Boost Retail Sales
Beyond Meatballs will be pre-seasoned with a blend of Italian spices, pre-rolled and ready to cook. It serves as a nutritious option, which is not only delicious but also convenient to prepare. The meatballs consist of simple, plant-based ingredients with no GMOs, soy, gluten or synthetic ingredients. Moreover, it will have 30% less saturated fat and sodium. The company also claims that the meatballs will contain no cholesterol, antibiotics or hormones. The product has a versatile flavor profile, making it fit for pastas, pizzas, soups, sandwiches and more.
The product will be made available by October across grocery stores including Stop & Shop, Sprouts, Whole Foods Market, Harris Teeter, Kroger (KR - Free Report) , Albertsons (ACI - Free Report) , and others. Moreover, consumers in Los Angeles and New York will be able to try the new product before they are available in stores, through an exclusive 1-day pop-up shop.
Beyond Meatballs is likely to be a worthwhile addition to the company’s retail channel. Markedly, the retail channel has been doing well, backed by higher at-home consumption amid the pandemic. During second-quarter 2020, strong retail channel sales volumes aided the company’s top line, which surged 69% year on year.
Notably, Beyond Meatballs mark the company’s third new retail product introduced in 2020. Prior to this, the company launched Beyond Breakfast Sausage and Cookout Classic. The company has been on track with the expansion of these products. It has been working with Walmart (WMT - Free Report) for expanding the distribution of Beyond Burger to more than 2,400 stores and Breakfast Sausage to over 2,200 stores. With continued favorable trends in retail takeaways and at-home consumption, the company is encouraged to continue launching new products.
Consumers are becoming increasingly aware of the health benefits of plant based meat products, as compared to animal-based meat. Beyond Meat is well placed to cater to such growing interests. In fact, the company prides on being one of the leading brands in refrigerated plant-based meat products. It has a widespread retail presence, with nearly 26,000 outlets across the United States. Apart from expanding its portfolio, Beyond Meat is also engaged in strengthening its distribution network and e-commerce capabilities. We expect such efforts to continue bearing fruit in the near term.
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