The rising popularity of plant-based food alternatives has kept
Beyond Meat, Inc.
BYND
on wheels with regards to expanding product offerings at retail outlets as well as engaging in prudent innovations. Well, the plant-based meat products giant is taking its product expansion spree at
Walmart Inc.
WMT
a step further, by increasing the distribution of certain products. The move forms part of Beyond Meat’s efforts to make plant-based meat options accessible to consumers across markets.
Following the announcement, shares of Beyond Meat increased 3% during the trading session on Mar 9. The company’s shares have rallied 68.9% in a year compared with the
industry
’s growth of 24.9%. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Broadening Distribution At Walmart Looks Prudent
Beyond Meat products are sold at more than 2,400 Walmart locations nationwide. Per the latest announcement, Walmart will be including the Beyond Sausage Hot Italian product across more than 400 of its stores, while also expanding the frozen Cookout Classic value pack across nearly 500 stores. This is the second time in a year that Beyond Meat expanded its offerings at Walmart.
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 added in the freezer aisle. Beyond Sausage Hot Italian and Cookout Classic are the latest additions to this list. Compared to traditional pork sausages, Beyond Sausage Hot Italian offers more protein and iron with less total and saturated fat as well as no cholesterol, antibiotics or hormones. Speaking of Cookout Classic, the product offers superior taste with the added convenience of being sold frozen. Customers’ response toward Cookout Classic has been encouraging, as a result of which Beyond Meat is reintroducing the item as a permanent SKU.
By expanding its partnership with Walmart, the company expects to meet the rising demand for plant-based meat products as well as unlock new potentials in this space. Moreover, Beyond Meat is expected to benefit from Walmart’s deep rooted and widespread presence in the retail sector.
Efforts to Boost Plant Based Offerings
Beyond Meat prides on being a leading provider of healthy plant-based meat alternatives whose products are made from simple ingredient and contain no GMOs or bioengineered components. Its products are sold at approximately 28,000 retail outlets across the United States. When it comes to bolstering product offerings, we note that Beyond Meat has been actively undertaking innovations. Last year, the company rolled out several new products such as Beyond Breakfast Sausage Links, Beyond Meatballs, Cookout Classic and Beyond Breakfast Sausage. This year the company teamed up with Yum! Brands to develop exclusive plant-based products.
Additionally, the company is expanding its distribution capabilities by teaming up with companies like Walmart,
The Kroger Co.
KR
, Whole Foods Market, Harris Teeter and Albertsons to name a few. Earlier this year, the company teamed up with
PepsiCo, Inc.
PEP
to form a new joint venture entity — The PLANeT Partnership, LLC. The venture seeks to develop, produce and market innovative plant-based protein snacks and beverages.
Wrapping Up
We note that Beyond Meat has been struggling with weak foodservices business for a while now. This Zacks Rank #5 (Strong Sell) company’s foodservice channel has been adversely impacted by sluggish food-away from home trends amid the coronavirus pandemic. During fourth-quarter 2020, revenues in the foodservice channel declined 42.6% year on year.
Nevertheless, the company’s retail channel has continued to remain strong, on account of sturdy product offerings and partnerships. Moreover, the company’s prudent efforts to expand offerings, places it well for growth in the forthcoming periods.
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