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Beyond Meat: On the Route to Profitability?

Lookup NU author(s): Dr Saurabh BhattacharyaORCiD

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Abstract

Beyond Meat Inc. (Beyond Meat), a manufacturer of plant-based protein products founded in 2009 and based in Los Angeles, California, had become a success, despite supply chain and manufacturing issues. However, as competition flooded the market, the firm’s founder and chief executive officer (CEO) faced a number of challenges: Beyond Meat was investing more and more in differentiation and innovation, and even refining the recipe of its bestselling Beyond Burger—something the CEO himself considered risky. Beyond Meat filed for an initial public offering in May 2019, and by the end of July 2019, the company’s share price had increased by over 800 per cent, but analysts considered Beyond Meat stocks to be overvalued given that the company’s increasing revenues and high-priced products had not prevented increasing losses. Still, Beyond Meat was expected to disrupt the animal-based protein industry. What should the CEO do to justify the valuation of Beyond Meat? How should he handle competitive forces? Did his venture hold any potential to disrupt the animal protein industry?


Publication metadata

Author(s): Agnihotri A, Bhattacharya S

Publication type: Online Publication

Publication status: Published

Series Title: Ivey Publishing

Year: 2020

Access Year: 2020

Description: Business Case Study

Acceptance date: 29/04/2020

Publisher: Ivey Publishing

Place Published: London, OT, Canada

Access Date: 16 July

URL: https://www.iveycases.com/ProductView.aspx?id=109408


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