What happened
In the latest in a series of distribution deals, Beyond Meat's (NASDAQ: BYND) flagship Beyond Burger will appear on the shelves of warehouse clubs BJ's Wholesale (NYSE: BJ) and Walmart-owned (NYSE: WMT) Sam's Club.
Investors are happy about this latest expansion of the alt-protein purveyor's footprint. They bid Beyond Meat's shares up by 6.7% on Monday.
Image source: Beyond Meat.
So what
BJ's and Sam's Club are both high-volume retailers with big presences on the U.S. market. Beyond Meat's arrangements with the two -- the terms of which were not detailed -- complement the first big warehouse club deal it signed in 2019 with Costco.
According to Beyond Meat, its eight-pack of Beyond Burgers was the first alt-meat product Sam's Club considered carrying, following a pilot sales program the retailer conducted earlier this year. As for BJ's, Beyond Meat said the company selected it among several competing products it did not identify.
The Beyond Burger is the company's flagship product. It has found its way not only onto grocery store shelves, but also menus at numerous restaurant chains.
In its press release trumpeting the new deals, Beyond Meat did not provide any of their terms nor financial particulars.
Now what
Beyond Meat also didn't give any estimates for how the BJ's and Sam's Club arrangements would impact its business. The company did write in the press release that it "is working to increase accessibility to plant-based meat through the development of new sales channels."
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Beyond Meat, Inc. The Motley Fool recommends Costco Wholesale. The Motley Fool has a disclosure policy.
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