The company reported revenue of US$87.9 million and a net loss of US$29.9 million in 2018, but has big plans for the booming plant-based meat market.
Beyond Meat is eyeing a lucrative initial public offering (IPO) and is planning to offer shares priced between US$19 and US$21. If it sells the 8.75 million shares it is offering at the US$21 price point, it will raise US$184 million.
The company plans to use the injection of capital to bolster its manufacturing facilities. It will also devote more funds to research and development and to marketing. It will list on the Nasdaq under the ticker ‘BYND’.
— CNN Business (@CNNBusiness) April 22, 2019
Beyond Meat says it products are good for human health and the environment
Despite conceding in its IPO filings that it may never make a profit, the projected market for vegan meat is considerable. 2017 Research from Nielsen showed that just under 40% of Americans are trying to eat more plant-based foods.
The company’s plant-based burgers have already made significant inroads, being available at Carl’s Jr and T.G.I Friday’s and retailers such as Whole Foods and Target. The burgers are also available in more than 350 Tesco outlets in the UK and have limited distribution in more than 50 countries, including Canada, Australia, UAE, South Africa and many European nations.
A Beyond Meat burger cooking (Image credit: Beyond Meat)
Beyond Meat has also been a darling of high-profile investors, with Tyson Foods, Bill Gates, Leonardo DiCaprio and internet entrepreneurs Biz Stone and Evan Williams among those chipping in money. The involvement of Tyson Foods is particularly interesting; the company has traditionally derived all its revenue from animal products but is now spending big to find viable plant-based alternatives.
The Beyond Meat range includes vegan-friendly, fake ‘meat’ substitutes for beef, chicken and pork. There is no genetic engineering involved in the fake meat. The company says its products have significant benefits for human health, the carbon footprint impact of food production, the depletion of resources and animal welfare.
Unlike some other meat substitutes, the Beyond Meat products are designed to look, taste and smell like animal meat. The company insists it is sold alongside animal meat and it even refuses to supply retailers who want to sell it in their vegan section.
At least one reporter has said she had to “go back and double-check the box to make sure these were, in fact, vegan” after cooking with Beyond Meat.
Scientists have advocated a change to a plant-based diet for both #environmental and #health reasons. @CEOMagazineAU spoke to industry experts, #dietitians and top #chefs on what our radically different #food future might look like.https://t.co/Cm5Mm93ySY
— The CEO Magazine (@CEOMagazineIN) February 28, 2019
Scientists have advocated for a massive reduction in meat consumption
Earlier this year, a group of scientists released a large-scale report advocating for an eating plan that would radically reduce the amount of meat in our diets. They concluded that a diet with more seeds, grains and vegetables and less meat and dairy would be beneficial for human health and would dramatically lower the unsustainably high carbon footprint of food production.
The report followed a similar study published in Nature last year which recommended that humanity switch to a ‘flexitarian’ diet for both health and environmental reasons.
Header image credit: Beyond Meat