The growing popularity of plant-based meat products is serving as an impetus for companies like Beyond Meat, Inc. BYND to expand their product lineup. In its latest move, the company announced the expansion of its much acclaimed frozen Beyond Breakfast Sausage to a greater number of stores across the United States by the end of September. The move resonates well with the company’s efforts to make its products more accessible across grocery chains. Let’s take a closer look.
Beyond Breakfast Sausage Will Hit More Stores
Per the expansion plan, Beyond Breakfast Sausage patties will be made available at close to 5,000 additional grocery locations in the United States, thereby doubling the products’ retail distribution. The added distribution locations includes grocery chains like Kroger KR, Harris Teeter, Target's TGT Super Target stores, Publix as well as Walmart WMT. The expansion is likely to be completed by the end of this month.
Management highlights that Beyond Breakfast Sausages were a hit among customers from the time it was launched, earlier this year. The company claims the product to be free from cholesterol, nitrates, nitrites, antibiotics or hormones. It has 50% less total fat and 35% less saturated fat and sodium compared with other leading pork breakfast sausage patties. Also it does not contain any GMOs, soy or gluten. The sausages have a versatile flavor offering, with notes like sage and black pepper. Moreover, it is a quick and convenient breakfast option that can be cooked in under five minutes.
Expansion Efforts to Cater to Rising Demand
Continued favorable trends in retail takeaways and at-home consumption have been encouraging Beyond Meat to expand and diversify offerings. We note that last week, the company announced the launch of Beyond Meatballs across grocery stores. Beyond Meatballs mark the company’s third new retail product introduced in 2020, following the launches of Beyond Breakfast Sausage and Cookout Classic. Apart from the expansion of Breakfast Sausage, the company is striving to expand the distribution of Beyond Burger to more than 2,400 stores.
We expect such efforts to further boost the company’s retail channel performance. Markedly, the retail channel has been doing well, backed by higher at-home consumption amid the pandemic. During second-quarter 2020, strong retail channel sales volumes boosted the company’s top line that surged 69% year on year.
Additionally, we note that consumers are becoming increasingly aware of the health benefits of plant-derived meat alternatives, as compared to animal-based meat. Beyond Meat is well placed to cater to such growing interests. In fact, the company prides on being one of the leading brands in refrigerated plant-based meat products. It has a widespread retail presence, with nearly 26,000 outlets across the United States. Apart from expanding portfolio and strengthening distribution network, Beyond Meat is also engaged toward enhancing e-commerce capabilities. We expect such efforts to continue bearing fruit in the near term.
This Zacks Rank #3 (Hold) company’s shares have more than doubled in the past six months compared with the industry’s growth of 19.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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