The plant-based food manufacturer Beyond Meat gained almost 10% on Tuesday.
The company expanded its presence at Walmart from 800 to 2,400 stores.
Beyond Meat shares reached a new 52-week high of $170.45.
The shares of Beyond Meat Inc (NASDAQ: BYND), a producer of plant-based meat alternatives, rose nearly 10% on Tuesday after the company issued a press release stating that it expanded its presence at retail giant Walmart Inc (NYSE: WMT).
Tripling in size
Beyond Meat said in a press release on Tuesday that the world’s largest retailer has agreed to offer its herbal products in 2,400 stores in the U.S. as early as next week. This represents a three-fold increase from the current 800 stores.
Would you like to buy shares in the fast-growing producer of plant-based foods? Here is a guide to buying stock in Beyond Meat.
The increased exposure is a direct follow-up to the successful Cookout Classic security from Beyond Meat, which was launched this summer. In response to poor sales to restaurants due to the COVID 19 pandemic, Beyond Meat quickly adapted in the food segment to attract new customers by offering Value Packs.
Beyond Meat’s relationship with Walmart dates back to 2015, before Beyond Meat was a public company. At that time, the company only sold frozen products, but has since expanded into the fresh meat segment.
Today, Beyond Meat sells a plant-based alternative to burgers, sausages and breakfast meats. Some 112,000 retail and foodservice outlets in 85 countries sell one or more of Beyond Meat’s products.
“Walmart has been an excellent partner, and we look forward to deepening this partnership in depth and breadth as we continue to offer more Beyond Meat products in more Walmart locations to further our commitment to making plant-based meat more accessible,” said Chuck Muth, Chief Growth Officer, Beyond Meat.
Why the increased demand?
Beyond Meat is promoting its food products as a healthier alternative to red meat, but with similar appearance and taste. The Beyond Burger, for example, contains 20 grams of protein, 35% less saturated fat than a traditional beef burger, no cholesterol, no antibiotics or hormones.
Compared to the beef industry, vegetable food requires much less resources in the form of land and electricity.
In its press release, Beyond Meat highlighted the latest four-week SPINS data (which ends in early September) that makes SPINS the best-selling brand in the vegetable-based chilled meat category.
Inventory response: new 52-week high
Beyond Meat shares reached a new 52-week high of USD 170.45 on Tuesday, closing the day at USD 165.66. The stock has risen about 120% since the beginning of 2020 and has roughly tripled in value since its low in March of $48.18.
However, the stock still has a lot of catching up to do to regain its all-time high of $239.71, shortly after investors rushed to buy shares after its IPO in 2019.