Beyond Meat (BYND) Fortifies Retail Distribution Amid High Demand
Beyond Meat, Inc. BYND has been strengthening its product distribution to make the most of the growing demand for plant-based meat. The company has unveiled some major product expansions at nationwide retail stores where it already has an existing footprint. This, in turn, solidifies Beyond Meat’s presence in nearly 28,000 retail outlets in the United States.
The widened retail availability includes Beyond Meatballs at nearly 1,500 stores of Kroger KR, 750 Target TGT stores and 163 stores of Giant Foods. Further, it includes the availability of Beyond Breakfast Sausage Links at about 1,500 stores, whereas Beyond Sausage will hit more than 200 Super Target stores in May. Apart from these, Cookout Classic will be extended throughout April and May to more than 3,000 current retail partner stores of Beyond Meat across the country. Incidentally, Cookout Classic was initially launched as a permanent retail offering at Walmart WMT stores in March 2021.
Notably, Beyond Meat has been boosting its retail portfolio, thanks to the rising demand for plant-based meat. The company introduced six new product SKUs last year and is also working toward strengthening its in-store presence at major retailers by offering more of its products. To this end, the company is expanding its distribution capabilities by teaming up with companies like Walmart, Kroger, Whole Foods Market, Harris Teeter and Albertsons, to name a few. Earlier this year, the company teamed up with PepsiCo to form a new joint venture entity — The PLANeT Partnership, LLC.
Certainly, 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 have helped it expand presence across the globe with ease.
However, the company 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 29.8% in the past six months against the industry’s growth of 5.2%.
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.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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