In this file:

 

·         Big meat threatens to gobble up fake meat companies, say studies

·         Beyond Meat: Assessing The Likelihood As A Takeover Target

 

 

Big meat threatens to gobble up fake meat companies, say studies

Conglomerates have bought out several smaller companies as the meat substitute market is predicted to grow rapidly

 

Matt Krupnick, The Guardian (UK)

10 May 2022

 

Big meat and food conglomerates threaten to push out smaller producers of meat alternatives in the same way they have affected other food industries, according to two recent reports.

 

Meat companies such as JBS and Cargill have invested heavily in plant-based proteins and laboratory-grown meats in recent years and bought out several smaller companies, according to a report published Tuesday by the non-profit Food & Water Watch and a March report from IPES-Food, a coalition of food systems experts.

 

The animal meat conglomerates are joining other food giants that already control about 80% of the meat alternative market, including Kellogg’s, which owns the MorningStar Farms brand, and Conagra, which owns Gardein.

 

“With most of these products you won’t see the parent company’s name on the label,” said Philip Howard, an associate professor at Michigan State University and lead author of the IPES-Food report. People buying meat alternative products “may not realize they’re supporting those big companies”, he added.

 

The meat substitute market is predicted to grow rapidly, from $4.2bn in sales in 2020 to $28bn in 2025, according to IPES-Food. Much of that growth will come from the already robust plant-based meat industry, the report said, but several conglomerates have also invested hundreds of millions to develop lab-grown meat – meat produced in bioreactors without the need to slaughter animals.

 

Both plant-based and lab-grown meat producers say their products are better for the environment than meat. Plant-based alternatives have a median carbon footprint 93% smaller than beef, according to a report from Johns Hopkins University. And German scientists have said replacing even 20% of the world’s beef consumption with microbial proteins such as Quorn could cut deforestation in half.

 

Even as the meat industry downplays the value of fake meat, as pressure grows from climate scientists and other experts to dramatically reduce meat consumption, some big meat companies may be looking for other revenue streams.

 

Cargill has been active in the sector...

 

JBS ... bought lab-grown meat firm BioTech Foods ...

 

more, including links

https://www.theguardian.com/environment/2022/may/10/meat-alternatives-industry-threat-monopoly

 

 

Beyond Meat: Assessing The Likelihood As A Takeover Target

 

Summary

 

o   Beyond Meat has spearheaded the development of the plant-based meat market and has advanced to become a recognized brand.

o   Weak fundamentals and a low-quality credit profile make the shares unattractive.

o   A takeover scenario is not out of the question but we believe that any potential suitors have little urgency to act. We rate Beyond Meat as a sell.

 

Karreta Advisors

via Seeking Alpha - May 09, 2022

 

Investment thesis

 

We rate Beyond Meat (NASDAQ:BYND) as a sell. Beyond Meat has spearheaded the development of the plant-based meat market and has advanced to become a recognized brand. However, its fundamental outlook looks unattractive. A takeover scenario is not out of the question, but we believe that any potential suitors do not need to act quickly but will wait and see how the company delivers in an increasingly competitive market.

 

Quick primer

 

Beyond Meat is a plant-based meat company, manufacturing products for retail and food service outlets in over 90 countries worldwide. Food products include burgers, mince, sausage, breakfast sausage, meatballs, chicken and jerky. Primary production facilities are located in Missouri and Pennsylvania in the US, and a European site in the Netherlands. It also uses co-manufacturing sites in the US, Canada and the Netherlands. There is an investment agreement to develop its business in China. The US market made up 68% of total sales for FY12/2021.

 

A Beyond Burger includes 18 ingredients which include pea protein isolate, rice protein, mung bean protein, refined coconut oil, potato starch and beet juice extract.

 

Key financials including consensus estimates ...

 

Our objectives ...

 

Positive factors for potential suitors ...

 

Gross margins versus peers ...

 

The next 5 years will be key ...

 

Risks ...

 

Valuation ...

 

Conclusion ...

 

more, including links, table, chart 

https://seekingalpha.com/article/4509182-beyond-meat-assessing-the-likelihood-as-a-takeover-target