Tyson Foods which was recently in the news for traces of metal in its products and was an investor in Beyond Meat announced its exit from the meat substitute firm. It stated that this step was being taken in view of the fact that Tyson Foods is setting up its own meatless production division this year. Tyson Foods owner Jimmy Dean stated that he sold his stake in Beyond Meat before it went public as he wanted to manufacture meatless products under its umbrella as a brand. During its quarterly conference call CEO Noel White stated that these plant based meat products will be launched in a limited manner this summer and depending on feedback a wide rollout will be carried out during holiday season of October and November. The stock of Beyond Meat fell by 6 % after this announcement of Tyson and later shot up by 7 %.
Beyond Meat made an impressive market debut this week and its shares surged by 163 % after opening pushing up its market value to $3.97 billion. Early this week the shares of Tyson gained by 2 % thereby enhancing its market value to $22.66 billion. Though Tyson’s market value compared to others like Impossible Foods and Beyond Meat is high it is likely to find competition fierce.
CEO Ethan Brown of Beyond stated that his firm is trying to capture interest of meat consumers through healthy alternatives that are free of gluten and soy so taste close to meat. With growing number of Americans cutting down on their consumption of meat and replacing them with plant based alternatives the market for meat substitutes is now worth $1.44 billion and by 2023 will grow by 74 % to nearly $2.5 billion. But producers like Beyond and Impossible Foods are finding it difficult to meet the surge in demand for meatless products and the former stated that a large part of its IPO earnings will be invested in setting up manufacturing facilities.