Plant-based meat alternatives are gaining popularity and
Beyond Meat, Inc. ( BYND Quick Quote BYND - Free Report) seems to be undertaking every effort to expand its presence in this space. This leading refrigerated plant-based meat products company announced plans to expand its distribution deal with retail behemoth — Walmart ( WMT Quick Quote WMT - Free Report) . The meat products company will triple the availability of Beyond Burger, from nearly 800 to more than 2400 Walmart locations, from next week. Investors are celebrating Beyond Meat’s broadening ties with Walmart. Incidentally, shares of Beyond Meat moved up 9.5% on Sep 29. Well, this Zacks Rank #3 (Hold) company’s shares have more than doubled in the past six months compared with the industry’s growth of 11.2%. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Broadening Walmart Partnership is a Prudent Move
Beyond Meat’s latest move to expand the distribution of Beyond Burger resonates well with the company’s efforts to make its products more accessible across grocery chains. Moreover, management comments that its relations with Walmart have been strong, thereby encouraging it to extend the partnership. In doing so, the company is likely to benefit from Walmart’s deep rooted and widespread presence in the retail space.
Beyond Meat’s frozen products were first launched at Walmart’s stores in 2015. Since then, the company has expanded its in-store offerings at Walmart to include Beyond Burger and Beyond Sausage in the fresh meat aisle, while the Beyond Breakfast Sausage patties were recently added in the freezer aisle. Growing Demand for Plant-Based Meat Options
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, Beyond Meat prides on being a leading provider of healthy plant-based meat alternatives whose products are made from simple ingredient.
Markedly, the Beyond Burger contains 35% less saturated fat and has no added cholesterol, antibiotics or hormones. It is also devoid of GMOs, soy or gluten. Beyond Burger — made out of peas, mung bean and rice — mimics the taste of a traditional beef burger. Retail Expansions are Worthwhile
The ongoing COVID-19 pandemic has clouded Beyond Meat’s foodservice channel sales, as consumers have been avoiding dining at restaurants. Nevertheless, the company’s retail channel has been doing well, backed by higher at-home consumption. During second-quarter 2020, strong retail channel sales volumes drove the company’s top line that surged 69% year on year.
The company’s efforts to expand and diversify retail channel offerings are likely to yield. Last week, the company announced the expansion of its frozen Beyond Breakfast Sausage patties to more than 5000 additional stores across the United States. The added distribution locations includes grocery chains like Kroger ( KR Quick Quote KR - Free Report) , Harris Teeter, Target's ( TGT Quick Quote TGT - Free Report) Super Target stores, Publix as well as Walmart. Earlier this month, the company launched Beyond Meatballs across grocery stores. Markedly, Beyond Meatballs mark the company’s third new retail product introduced in 2020, following the launches of Beyond Breakfast Sausage and Cookout Classic. We note that Beyond Meat’s products are available across 112,000 retail and foodservice locations in 85 countries. Apart from expanding portfolio and strengthening distribution network, Beyond Meat is also engaged toward enhancing e-commerce capabilities. We expect such efforts to continue bearing fruit in the near term. The Hottest Tech Mega-Trend of All
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