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