Beyond Meat Attracts Tyson Foods Veterans, Preparing For Fast Food Growth Next Year

Beyond Meat plant-based burger cutlets are on sale.

Paul Jung | Bloomberg via Getty Images

Beyond Meat has lured two industry veterans from Tyson Foods into leadership roles as the company prepares for high-profile launches next year.

Doug Ramsey will take over the role of Chief Operating Officer. He spent three decades at Tyson overseeing McDonald’s poultry and business. His experience with the fast food giant will benefit Beyond, which signed a three-year global agreement with McDonald’s earlier this year… Beyond also has partnerships with Taco Bell owner Yum Brands and PepsiCo.

Former Beyond COO Sanjay Shah left the company in September after spending less than two years with the Gopuff delivery service. Shah’s résumé included time spent at Tesla and Amazon, but not at food and beverage companies.

In addition to Shah’s successor, Bernie Adcock will join him as Chief Supply Chain Officer, a new role for Beyond, and will report to Ramsey. He also worked at Tyson for over 30 years with a focus on operations and supply chain management.

“[Ramsey and Adcock] “Better than anyone else, understands large-scale protein production at a cost structure that ordinary consumers can afford,” Ethan Brown, CEO of Beyond Meat, said in an interview.

‘Growth on the table’

“In everything we have, whether it’s partnerships with McDonald’s, with Yum, with PepsiCo, we expect tremendous growth and we need to make sure we have the best operational and supply chain capabilities available to us and our customers. “, – he added.

Tyson and others have a story. Prior to the initial public offering of Beyond, Tyson was an investor in the company, but sold its stake in preparation for launching its own line of meat alternatives.

Shares of Beyond on Tuesday rose almost 6% to $ 71.25. The stock is down 43% this year, bringing its market value to $ 4.5 billion.

Investors punished the stock as slowing food demand failed to offset the damage done by the Covid pandemic to its food service business. Interest in short positions has also doubled since July, with about 36% of the shares being sold short, according to FactSet.

In the last quarter, the company also faced operational and supply chain problems that drove its sales. Revenue in the United States fell 13.9% to $ 67.5 million in the three months.

Brown is more optimistic about next year, but the company has yet to provide a forecast for 2022. For the fourth quarter, Beyond projects net sales of between $ 85 million and $ 100 million, expecting operational issues to continue to affect its results. …

“I think what we see next year gives us the opportunity to really talk to the consumer again, given the number of launches we’re going to have and the potential to create buzz in the retail space because of these actions. , “Brown said.

Launch with McDonald’s, ahead of PepsiCo

A sign advertising a McDonald’s “PLT” burger with a plant-based Beyond Meat cutlet at one of 28 test restaurants in London, Ontario, Canada, October 2, 2019.

Mo Duaron | Reuters

As concerns about inflation affect both businesses and consumers, Brown said price increases give Beyond more room to meet its price parity goals of lowering the prices of its animal meat competitors by at least one meat by 2024, Brown said. … Beef prices are on the rise, he said, as the company seeks to eliminate costs from its system.

“Right now, we have the opportunity to go back, especially to the US, and create a much more efficient manufacturing system,” Brown said, adding, “In general, the inflationary prices you see, the pressure you see in the protein market. will be in our favor. “

As the omicron coronavirus variant remains unknown going forward, Brown said the company is poised to face potential challenges and look forward to maximizing existing offerings. Over the past two years, the company has introduced more than a dozen retail and food service products in the US and overseas. The pandemic hit his business hard, first boosting retail sales as consumers were loaded into pantries, but then hitting foodservice sales with restaurant closings.

“I think what we will do [in the face of pandemic-related challenges] We are focusing on a product that we have already commercialized because trying to scale during a pandemic and introducing new products can be challenging, ”he said.

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