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Beyond Meat (BYND) to Launch Breakfast Sausage Links in Canada

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Leading provider of plant-based meat alternatives, Beyond Meat, Inc. (BYND - Free Report) , has been proactively expanding its products and boosting retail presence.  The rising preference of plant-based meat options is driving the company to widen its portfolio and explore new market opportunities. The company, whose products are already popular in the United States, is now entering the retail breakfast category in Canada. It is launching plant-based Beyond Breakfast Sausage Links across Canada’s grocery stores. Let’s delve deeper.

Expanding Into Canada Looks Prudent

Beyond Meat’s products have helped maintain the culture of healthy breakfast options. The company is striving to expand its products globally. In this regard, its initiative to increase better-for-you plant-based food in Canada is a significant step forward.

Management stated that there is a growing appetite for plant-based protein in Canada. Given such market opportunities, the company’s launch of Beyond Breakfast Sausage Links in the country looks quite prudent. The move will also help the company gain a footing in the retail breakfast category in Canada.

Consumers will be able to purchase Beyond Meat’s plant-based sausage links at all major retailers in Canada. Beyond Breakfast Sausage Links are developed from simple, plant-based ingredients like peas and rice, with no GMOs, soy, gluten, antibiotics, hormones or cholesterol. It contains less sodium than other leading sausage brands. Each package will contain eight sausage links that are crafted to replicate the flavor and juicy texture of traditional breakfast sausages. The company is also launching the campaign — Sleep for Sausage — wherein it will provide free Beyond Breakfast Sausages to customers in Canada.  The campaign will begin from Oct 14.

Beyond Meat’s advanced research, innovation and culinary teams are focused on creating plant-based meat that acts as a perfect substitute for their animal equivalent in terms of taste along with being beneficial for health and the planet. The company’s strong brand image and high-quality products, with stern ingredient guardrails, have helped it expand presence across the globe. As of June 2021, Beyond Meat’s products are available at approximately 119,000 retail and foodservice outlets, across 80 countries globally.

Prudent Growth efforts

As part of its innovation strides, the company rolled out several new products — Beyond Breakfast Sausage Links, Beyond Meatballs, Cookout Classic and Beyond Breakfast Sausage and many more. It has partnered with PepsiCo, Inc. (PEP - Free Report) to form a new joint-venture entity — The PLANeT Partnership, LLC. — that will develop, produce and market innovative plant-based protein snacks and beverages. It has been in partnership with Yum! Brands’ (YUM - Free Report) Pizza Hut to develop an innovative plant-based protein menu. The company is expanding its retail presence by teaming up with companies like Walmart Inc. (WMT - Free Report) , Kroger, Whole Foods Market, Harris Teeter and Albertsons, to name a few.

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Wrapping Up

While reporting second-quarter 2021 results, Beyond Meat witnessed sturdy growth in its top line, thanks to recovery in the foodservice channel. Its overall retail channel sales, excepting U.S. retail, have been growing on the back of higher distribution and sales to international customers. During the second quarter, the company witnessed a decline in U.S. retail channel sales, primarily due to unfavorable year-on-year comparison. The downside stemmed from the lapping of last year’s stockpiling trends. Shares of the company have declined 30.5% in the past three months compared with the industry’s fall of 4.4%.

Nevertheless, we expect the demand trends to pick up pace in the U.S. retail channel in the forthcoming periods. This Zacks Rank #3 (Hold) company’s efforts to boost offerings and strong distribution capabilities supported by well-chalked partnerships are likely to continue yielding and boost investors’ confidence.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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