Plant based meats have grown at a steady pace in the United States. A whopping $650+ million has been spent by Americans on meat replacement products, a research study by Nielsen reveals.
Beyond Meat and Impossible Foods have been ruling the meat replacement products market and the demand for the product line has spurred their growth. The confidence amongst the investing community is also encouraging.
Beyond Meat is anticipating a $200 million funding raise by selling around 8.75 million shares at a upper ceiling of $21 per share. This valuation bets Beyond Meat is worth more than $1 Billion today.
Good News for Investors?
The public offering comes in as music to the years for the investors of Beyond Meat – DNS Capital which manages the assets of the Pritzker family, Cleveland Avenue founded by McDonalds chief Don Thompson, Kleiner Perkins and Obvious Ventures. These investors including Bill Gates and Tyson Foods have funded around $122 million for Beyond Meat’s journey which combats America’s meat eating habit.
It is to be noted that Tyson Foods which is famous for its meat processing and marketing invested in Beyond Meat in 2016.
Beyond Meat is Yet to Make Profits
Beyond Meat has a phenomenal growth record from its meagre $16 million in 2016 to $88 million in 2018. This growth does not take away the fact that Beyond Meat is yet to make any profit. The operating losses were around $30 million in 2018.
Beyond Meat Makes History
Beyond Meat has its head in front when it comes to inducing meat replacement foods into American supermarkets. It is the first company in the meat replacement business to offer a public offering while its competitors – Impossible Burger and Just, which deals with lab-grown meat follow the trend.
Meat consumption is valued at $270 Billion in America as of 2017 and investments in meat replacement startups is expected to slice out of a chunk of this $270B.