Los Angeles based Beyond Meat is ramping up its European business with deals in Sainsbury and Waitrose as well as new listings in Austria.

Beyond Meat factory, Netherlands

In June 2020 the company signed a joint manufacturing deal with Zandbergen to produce its burgers and sausages in Europe. This was its first production facility outside the US.

Zandbergen is a privately owned, chilled and frozen meat business based in the Netherlands.

Later in 2020 Beyond Meat announced a production agreement with the Jiaxing Economic & Technological Development Zone near Shanghai. In China Beyond Meat has focused on signing deals with QSR chains.

Dig below the headlines and whilst Beyond Meat’s revenues exceeded US$400m in 2020, a solid 36% growth on 2019, the business posted losses in excess of US$50m. Actually for the last 5 years it has yet to produce a profit. An increase in SGAs contributed to the losses, according to the Financial Times.

I imagine one reason for signing joint manufacturing deals is to minimise capital expenditure, as well as be close to strategic customers like Sainsbury & Waitrose.

Beyond Meat IPO-ed at $25 a share and now trades around $135. However, analyst consensus is currently slanted towards hold-underperform, according to the FT.