In the world of consumer food tastes, things change and there are many choices. At one time many people ate meat on a regular basis, now they have cut back. One way to cut back is to eat plant based food shaped similar to meat products. In an article by Bharath Manjeshr and Tina Bellon of Reuters, the first company to issue stock is a company called Beyond Meat. The shares were priced at $25, opened at $46 and closed at $65 a share. It was a good day for underwriters, so expect more offerings of other companies.
Beyond Beef is based in the Los Angeles area and aims to market its meatless burgers patties to meat loving consumers displaying its products in the meat case of supermarkets. Plant based substitutes for meat are gaining popularity for both health concerns, animal welfare, environmental hazards of intensive animal farming.
Tyson Foods the number one meat processor owned a 6.5% share, but sold its holdings as it intends to develop meatless products in house.
Burger King, Impossible Foods, Carl’s Jr. all use Beyond Meat for their burgers which accounted for $37 million. The burgers are made with peas for proteins, fava beans and soy. Currently 70% of sales are the Beyond Beef patties.
In supermarkets such as Whole Foods and Kroger, Beyond Meat generated $50 million.
Linking to dividend paying stocks, Beyond Beef is the first of many companies in a very crowded space. While Beyond Beef hopes to be the largest producer, other companies can and will occupy the space For dividend investors, it is best to wait until a few mergers happen and then one can own for your dividend accounts. In the meantime, the dividends you receive can buy companies such as Beyond Beef as you wait to see who emerges as market leaders.
There are more questions than answers, till the next time – to raising questions.