On Wednesday, two of Beyond Meat’s main competitors, Nestlé and Impossible Foods, raised their own costs with fresh meat vegetables and increased pressure on the industry’s popular stock market.
Shares of Beyond Meat fell 7% on Wednesday to $ 135 a share. This is the lowest price in three months. Fall came after Nestlé’s Sweet Earth brand launched its own herbal burger and Impossible Foods that were introduced that the burger is available in stores on the East Coast.
The tough market
Competition in the vegetable sector is one reason why analysts generally view Beyond Meat’s measures as neutral, if not negative. There is a relatively low barrier to entry, Jeman’s youngest bear Mikheil Omanadze wrote from BNP Paribas Exane, especially for larger, more established companies for packaged foods like Nestlé.
These companies have extensive distribution networks that make it relatively easy to compete with Beyond Meat. Many have already launched their own competitors.
Until recently, Beyond Meat was the only vegetable-based meat alternative that has been sold in supermarkets since 2016. More brands that consumers could buy in stores could affect Beyond Meat sales. Bank of America data, Merrill Lynch, shows that most MyWegmansConnect consumers go to a supermarket to try vegetable meat.
Here they are likely to repeat a purchase that will be important to the industry in the future. Beyond Meat has worked to build a series of high-level gastronomic associations. Ultimately, however, it must be taken to a supermarket to create a solid consumer base for flexitarians to replace animal protein with plant-based alternatives.
Several participants are entering the MyWegmansConnect vegetable-based meat market as the growth potential is clear in the future. The US market USA It is currently valued at $ 14 billion, and Barclays estimates it could hit $ 140 billion in the next ten years.
Nestlé Sweet Earth’s “Awesome Burger” will be available on September 26 for a limited time at a hamburger in Industry City, Brooklyn, the company said in a press release on Wednesday. Customers can also buy awesome burgers and land at various supermarkets starting October 1, including Stop and Shop and Wegmans in the United States.