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Beyond Meat (BYND) Expands Retail Product Distribution in Europe

Beyond Meat, Inc. BYND is on the wheels to solidify its product distribution capability, not only across the United States but also internationally. Incidentally, the renowned plant-based meat company has unveiled major product distribution expansions at thousands of retail locations across Europe for spring 2021. These include retail locations in the United Kingdom, Germany, Switzerland, Austria and the Netherlands.

We note that the plant-based food market in Europe has witnessed robust growth, with its sales up 49% over the past two years. That said, the aforementioned product distribution in the region bodes well for Beyond Meat, which has long been focused on catering to the growing demand for plant-based meat. The company’s products can be found at nearly 122,000 retail as well as foodservice locations across more than 80 countries in the world.

The increased retail distribution in Europe testifies the continent’s growing appetite for Beyond Meat’s products. Importantly, in 2020, the company had announced its first co-manufacturing facility in the region, in collaboration with Zandbergen World’s Finest Meat, which is based in Zoeterwoude. Additionally, it announced the buyout of its first manufacturing facility in Enschede, further highlighting Beyond Meat’s concentration on expanding in the global markets. Talking of global markets, the company last week announced the opening of its manufacturing facility in Shanghai, within the Jiaxing Economic & Technological Development Zone (JXEDZ). Clearly, this new facility in China will help Beyond Meat solidify its footing and effectively compete in one of the largest meat markets in the world.

Well, Beyond Meat prides itself on being a leading provider of healthy plant-based meat alternatives whose products are made from simple ingredients and contain GMO-free or bioengineered components. The company’s strong brand image and high-quality products, with stern ingredient guardrails, have helped it expand presence across the globe with ease.

Moreover, Beyond Meat has been actively undertaking innovation. Last year, the company rolled out several new products, such as Beyond Breakfast Sausage Links, Beyond Meatballs, Cookout Classic and Beyond Breakfast Sausage. In 2021, the company teamed up with Yum! Brands YUM to develop exclusive plant-based products. Additionally, the company is expanding its distribution capabilities by teaming up with companies like Walmart WMT, The Kroger Co. KR, Whole Foods Market, Harris Teeter and Albertsons, to name a few.

However, it has been struggling with a weak foodservice business for a while. 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. This was evident in fourth-quarter 2020 results, wherein sales from this channel declined 42.6% and 62.9% in the U.S. and International regions, respectively. Shares of the company have declined 7.2% in the past three months against the industry’s growth of 9.5%.

Nevertheless, the company’s retail channel continues to remain strong, thanks to increased demand stemming from the pandemic-led elevated at-home consumption. In this regard, the company’s sturdy product offerings and partnerships have been yielding results and are likely to keep it well positioned for growth.

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