Fake Meat Company “Beyond Meat” Set for $1.2B IPO Value

Plant-based alternative protein startup Beyond Meat has made a lot of headlines, lately, and it has helped the company to raise quite a bit of interest approaching its initial public offering. Backed by Bill Gates, Leanoardo DiCaprio, and Tyson Foods, Beyond Meat expects to reach an IPO price between $19 and $21, which will elevate the California-based company’s overall market value to more than $1 billion.

The company’s IPO was filed last November and the plan is to list the company on the Nasdaq under the ticker symbol “BYND”.

In its regulatory filing with the Securities and Exchange Commission, on Monday, the budding company aims to raise $183.8 million through this IPO. And Beyond Meat has said, then, it plans to use this money to invest in new manufacturing facilities and supply chain capabilities in addition to introducing new marketing initiatives. 

In this regulatory filing, Beyond Meat reports strong sales growth across the past few years.  Indeed, the data shows that net revenues grew from $16.2 million, in 2016, to $87.9 million, in 2018.  If you haven’t done the math, that is a 133 percent compound annual growth rate with an overall 170 percent jump in 2017 against a net loss of nearly $30 million, in 2018.

This jump is quite significant, indeed, and it is supported by other data.  For example, a 2017 survey from Nielsen Homescan suggests that nearly 40 percent of all Americans are actively trying to consume more plant-based foods.  Of course, this is easier said than done, particularly in terms of transitioning from the full flavor of animal proteins to the cleaner vegetarian alternatives that are currently on the market.  But “fake meat” has been on the rise the past few years:  plant-based meat/produce alternatives have surged while traditional vegan staples (tofu, granola, brown rice, etc) are falling flat. 

Currently you can find Beyond Meat’s products at Whole Foods, Target, and Kroger grocery stores.  If you want to see what some restaurants can do with the ingredient, you would also be happy to find these products featured in menu items at TGI Friday.