Coronavirus: A Perfect Storm for Fake Meat (BYND)
A brewing American meat shortage, rising Chinese adoption are a 1-2 punch for Beyond Meat, plant-based protein producers
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
The COVID-19 outbreak has actually benefited a small number of industries so far. Unsurprising areas such as work collaboration tools and e-commerce have enjoyed a lift. But a few less likely winners are emerging, too, and that includes plant-based protein companies such as Beyond Meat (BYND) – thanks to both domestic and international trends.
Here in the U.S., increasing worries about meat shortages thanks to outbreaks in tight-quartered slaughterhouses is prompting a surge in "meatless" meat. Tyson Foods (TSN), Smithfield Foods and Brazilian food processor JBS have recently shut three plants that account for 15% of U.S. pork production, and other meats are being impacted by coronavirus-linked closures.
Consumers are already latching on to plant-based proteins while in quarantine. Nielsen says the country's sales of plant-based meat products surged 265% year-over-year for the eight-week period ended April 18, versus 39% for fresh meat. Nationwide shortages of pork, beef and chicken could accelerate that adoption.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
China is proving to be a catalyst, too. Beyond Meat has recently started hocking its wares in thousands of Chinese Starbucks (SBUX) locations, and KFC has started to try out plant-based chicken.
Beyond Meat, the largest pure play on plant-based protein, already has a head of steam. In February, the company reported sales that more than tripled during its fourth quarter, though it also delivered a small net loss. Meanwhile, investors have driven BYND shares 44% higher YTD in anticipation of continued rapid growth, versus a 12% loss for the S&P 500.
Investors wanting to get into Beyond Meat's stock now, however, would be paying more than 200 times next year's earnings estimates for the opportunity.
Past that, investors don't have too many choices for riding this trend. The industry’s other major name – Impossible Foods, the company behind Burger King's Impossible Whopper and other plant-based meat products – is privately held. Meanwhile, Kellogg (K) and Tyson Foods are among larger companies that sport plant-based protein products, but they remain small portions of the overall business.
STAY A STEP AHEAD: Kiplinger's Daily Personal Finance and Investing Tips
-
Ask the Tax Editor: Federal Income Tax DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on federal income tax deductions
-
States With No-Fault Car Insurance Laws (and How No-Fault Car Insurance Works)A breakdown of the confusing rules around no-fault car insurance in every state where it exists.
-
7 Frugal Habits to Keep Even When You're RichSome frugal habits are worth it, no matter what tax bracket you're in.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
