Beyond meat, the $ 5 billion vegan unicorn has attracted attention

OPINION: The US stock market hosted another unicorn last week. He was a vegan and gave investors a return of 160% a day.

Beyond meat is a classic disturbance broth. It is now worth about 5.3 billion Australian dollars ($ 5.6 billion New Zealand) and is losing money. It is therefore not promising to know if it is possible for this to produce a profit.

So what? It has attracted the attention of investors who are looking at long-term trends, including the increase in vegetable-based foods, especially in developed countries, and increased interest in the environment .

There are a lot of unicorns that do not make a profit but have stellar earnings gains. In this respect, Beyond Meat is true to its form.

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* Beyond Meat, with lenders like Leonardo Dicaprio, could be worth $ 1.2 billion

In 2018, Beyond Meat's net loss decreased slightly to $ 29.89 million from $ 30.38 million a year ago. Net revenues more than doubled to $ 87.93 million over the same period.

Investors have learned to tolerate lasting losses as long as incomes rise and companies invest in growth.

Beyond meat has an extra level of appeal. It is a company that fits perfectly with the millennial population, which is much more inclined to integrate a social goal in investment than its baby boom parents.

Beyond Meat is exploiting the growing demand for healthier foods and its popularity is fueled by concerns over the environmental consequences of meat growth and animal welfare.

The company uses the growing range of so-called "impact investors" – a cohort that goes beyond environmental, social and governance filtering to actively generate a measurable and beneficial social or environmental impact. as well as a financial return.

In this sense, it is a company ready to invest.

(Incidentally, millennia have accumulated in the Tesla stock when it fell after the poor quarterly results a few weeks ago).

It is interesting to note that Tyson Foods, the largest meat producer in the United States, sold its 6.5% stake in the float. Don Thompson, former chief executive of McDonald's, and Evan Williams, co-founder of Twitter, also lent their support.

In addition, Leonardo DiCaprio and Jessica Chastain were supported by many personalities who supported advertising. Even Bill Gates was in the action.

Fast food and soft drink companies have been under pressure for years, while middle-class consumers are looking for healthier options.

Beyond Meat is just one of many companies looking to take advantage of healthy eating trends.

Its particular segment is meat substitution. It produces patties for grocery stores and fast-food restaurants that look like beef patties, feel like beef patties and have a taste (a little) of those of beef.

The public exchange offer was designed to raise funds for Beyond Meat to move beyond its existing markets: United States, Italy, Israel, United Kingdom and Canada.

Here is the speech contained in his flyer: "Beyond Meat is one of the fastest growing food companies in the United States, offering a portfolio of ground-breaking herbal meats.

"We are building meat directly from plants, an innovation that allows consumers to taste the taste, texture and other sensory attributes of popular animal-based meat products, while benefiting from the nutritional benefits of consumption of our meat products.

"Our commitment to the brand," Eat What You Love ", represents our deep belief that by eating our herbal meats, consumers can enjoy more, not less, their favorite dishes, and thus contribute to solve problems related to human health, climate change, conservation of resources and animal welfare. "

The global meat market, worth 1.4 trillion US dollars, is huge and the meat imitator market is tiny by comparison – just 670 million US dollars in the retail channel American.

Beyond Meat is not the only company dealing with the meat substitution market and new entrants are emerging as mushrooms. One of them is Tyson Foods, which is now looking to compete with the company it originally supported, while the Nestlé catering giant is preparing to launch its own version of a hamburger-based of plants.

Impossible Foods is another on the same market. In the United States, he has teamed up with Burger King to test what he calls the impossible Whopper.

Beyond the meat has so far joined Carl's Jr and Del Taco in the fast food market and sells in retail stores, including Amazon's supermarkets. Food Market and Kroger Co.

Beyond Meat's ability to stay one step ahead will depend on its ability to expand its overseas market and develop better imitations of meat, which requires investments in the supply chain and innovation.

Beyond Meat does not need to convert carnivores to herbivores. Flexitarians – the food equivalent of a hybrid vehicle – constitute a much larger and addressable market.