Despite the huge pressure on the stock price, beyond meat, the “first share of plant meat”, does not seem to intend to lie flat.
Today, Rosen announced the establishment of two kinds of instant noodles in Jiangsu Province: “Rosen and Rosen will enjoy the Chinese style instant noodles” from Rosen on May 16, and pay attention to the establishment of Rosen’s “Rosen” instant noodle chain in Jiangsu Province.
It is worth noting that this is the first time beyond meat has cooperated with chain convenience store brands in China, and it is also its latest attempt to seek new growth points in Chinese business.
(data and pictures)
At present, the plant meat company, which was once sought after by capital, is experiencing a “trough”.
According to its financial report released on May 11, in the first quarter of 2022, beyond eat’s net revenue was US $109.5 million, a year-on-year increase of 1.2%; The net loss was US $100.5 million, an expanding trend compared with the net loss of US $27.27 million in the same period last year. After the release of this performance lower than market expectations, the company’s share price once fell below the issue price for the first time, down 90% from the highest point.
Beyond meat’s share price performance this year
After the “halo” of the capital market fades, how will beyond meat continue to tell the story of plant meat? We might as well pay attention together.
Enter convenience stores
In China, one of the world’s largest meat consumption markets, the latest starting point of beyond meat is convenience stores.
The company said today that the two Bento prefabricated products jointly launched with Rosen adopt beyond meat’s plant meat, which is mainly aimed at urban white-collar workers, college students and young audiences. Among them, Italian spicy eggplant enjoys pasta, which is easy to use beyond pork ™）， It is a plant meat product specially developed by other meat customers for the Chinese market.
“Other meat plant-based pig surimi is made of pure plant raw materials. It has the versatility, meat quality and juiciness similar to traditional pork. The protein content per 100g is about 18.5g. In addition, it contains about 15.6g fat per 100g, while traditional pork contains about 30.1g fat per 100g.” Beyond meat said.
Another new product, seven kinds of seasonal vegetables, enjoys the convenience of bibimbap, and uses other meat guest plant-based beef surimi (beyond beef) ™） Products. It is reported that the taste and taste of its plant-based beef surimi are similar to that of traditional animal beef surimi. At the same time, the protein content per 100g is about 17g, and the fat content per 100g is about 16.8g, while the fat content of traditional beef shoulder meat per 100g is about 31.7g—— Obviously, “low fat” is still one of the biggest selling points of its plant meat products.
Two new Bento products jointly launched by beyond meat and Rosen
It is worth noting that the plant meat products used in the above Bento have been produced locally from the local production facilities of beyond meat in Jiaxing Economic and Technological Development Zone. The plant was officially put into operation last year and is the first end-to-end plant meat production facility built by beyond meat outside the United States.
For Chinese consumers, this means that on the basis of lower raw material cost of plant meat, the price of plant meat Bento can also be “relatively close to the people”. For a long time, high prices have been regarded as one of the important reasons to prevent vegetable meat from further seizing consumers’ table. It is reported that the prices of pasta and bibimbap launched by beyond meat and Rosen are 14.9 yuan and 17.9 yuan respectively.
Interestingly, in addition to beyond meat, many plant meat brands also choose to bet on this C-end channel recently. After catering, supermarkets, new retail and e-commerce channels, convenience stores began to become a new battlefield for plant meat brands, but beyond meat is also facing considerable competitive pressure.
For example, xiaoshidai noticed that last Monday, the Australian vegetable meat brand v2food, which officially entered the Chinese market last year, announced the opening of a partnership with Shanghai Rosen convenience Co., Ltd. and listed a new “vegetarian red stewed beef flavor bag” containing V2 vegetable protein meat in some Rosen convenience stores in Jiangsu and Zhejiang. In appearance, this new product is also branded with different interesting blessing words and patterns, implying good luck in the year of the tiger.
V2food said that the whole bag of beef buns will also be sold online at Rosen convenience store in Shanghai. After most stores resume normal operation, they will successively land in 2300 stores in Jiangsu, Zhejiang and Shanghai. With the help of Shanghai Rosen’s mature convenience store operation system and its advantages in the new retail industry, it will accelerate its entry into consumers’ daily life.
Vegetable meat steamed stuffed bun launched by v2food and Rosen
“This is our first large-scale cooperation with chain convenience stores in China, and it is also one of the most important turning points of v2food. We are glad to cooperate with Shanghai Rosen to launch convenient and fast plant protein meat products.” Said Nick Hazell, CEO and founder of v2food.
Xiaoshidai introduced that v2food was established in Australia in January 2019, but there are many Chinese investment institutions behind it, including Sequoia China, Huaxing capital and Yihe food, a Chinese food distributor. According to the company, it “has become the largest vegetable meat brand in Australia” and has entered the markets of New Zealand, Thailand, the Philippines, Japan and South Korea. Nick Hazell told xiaoshidai last year that the primary task of v2food is to develop in Asia, especially in China.
It is worth noting that the plant meat of v2food has also realized localized production. At present, the company has established partnerships with two local factories in China to provide plant meat products “closer to the price of traditional meat”. It is reported that the price of plant meat steamed stuffed bun launched this time is 3.5 yuan, which is close to the price of traditional meat steamed bun.
The same brand of “haood” has to be rolled up in the convenience store.
Just last Wednesday, the start-up brand that uses peanut protein to produce plant-based chicken announced the launch of a snack “vegetarian kebab” in the convenience store channel to cater to the eating preferences of young people. “Starting today, our latest product ‘Suxiang string’ will be sold in more than 2300 Jiangsu, Zhejiang and Shanghai Rosen convenience stores.” Astrid prajgo, founder and CEO of haofood, said.
Local vegetable meat brands began to settle in convenience stores earlier, including two snacks “one mouthful of shredded vegetable meat” and “week zero protein bar” successively listed in this channel last year. Wu Yanzi, founder and CEO of zhouzero, once told xiaoshidai that zhouzero hopes to create a C-end product matrix that meets different scenarios and needs, so that consumers can have more contact with plant meat, and gradually form and deepen their impression of this category.
“Strategic new products”
In the environment of intensified competition and consumer demand to be further explored, beyond meat urgently needs to prove its business potential, growth and profitability to the capital market. Since the beginning of this year, the share price of the “first share of plant meat” has fallen by more than half.
This amazing decline is caused by a variety of factors. The latest “mending knife” its share price is lower than the expected performance of the market.
Ethan brown, founder and CEO of beyond meat, mentioned at the performance meeting a few days ago that the reasons for the expansion of the company’s operating losses in the first quarter of 2022 include the weakness of the overall plant-based market, higher promotion investment and greater discounts (including strategic price cuts in the EU), intensified category competition, and the new plant meat jerky with high-cost manufacturing process, Its launch has seriously affected the profit margin, and so on.
Beyond meat jerky
However, brown stressed that some strategic initiatives are necessary inputs for long-term growth.
“We recognize that the decisions we made today in support of our long-term goals pose challenges to our recent performance, including a temporary decline in our gross profit margin due to our cost intensive measures to support important strategic new product launches (Note: beyond meat jerky is the company’s first packaged snack product with a long shelf life). However, we are confident in our future.” He said.
Credit Suisse recently pointed out that beyond meat needs to strengthen its pricing power and no longer fight a “price war” if it wants to regain investor confidence. In addition, Credit Suisse said that the research found that in the U.S. and European markets, impossible foods is seizing the market share of beyond meat.
Specific to the Chinese market, beyond meat did not separately disclose the performance of the business. However, xiaoshidai noticed that brown mentioned at the meeting that the company is entering more sales channels in China.
“In China, in late March, we announced the opening of a flagship store on pinduoduo, one of China’s largest e-commerce platforms, which has hundreds of millions of users across the country. This marks that beyond meat has become the first global vegetable meat brand to open a flagship store in pinduoduo. We will launch locally produced beef on this platform ™）、 Beyond Burger ®）、 Beyond pork ™） Products. ” He said.
Ethan brown, founder and CEO of beyond meat (material picture)
Up to now, beyond eat’s products have been sold in offline retail channels such as city supermarkets and Sam’s club stores, as well as three major e-commerce channels: jd.com, tmall.com and pinduoduo. In addition, it has also established cooperative relations with Starbucks China, yum China and a number of local restaurants, including jindingxuan, youhang fresh beer and so on.
Xiaoshidai learned that the above-mentioned “strategic new product” beyond meat jerky, which is highly expected, has not yet entered the Chinese market. However, it is clear that the company will continue to launch more new products in China.
“In China, as we intend to do in the United States, we are happy to bring more innovation to the market, which reflects our investment in local management, production and innovation. Later this year, we will launch more new products in China, which will be developed and implemented by our teams in Shanghai and Jiaxing.” Brown said at the meeting.