Amid the growing shortage of meat supply in the United States due to plant closures and limitations, Beyond Meat – the billion-dollar plant-based burger and sausage production company – has planned to offer value packs and discounts to US retailers in this market, capitalizing on the moment to take a greater portion of the market share.
In a statement, founder Ethan Brown said they “will be aggressive on pricing this summer. It makes sense. We’re not going to reset our long-term margin targets. We are going to use the summer as an opportunity to bring new consumers into our brand, increase the overall consumer base, so you will see us be aggressive in stores with longer discounting than we’ve done in the past. Deeper with the discounts as well, as well as special promotions with our quick-service restaurant partners. We want to use this opportunity to introduce people to plant-based meat and hopefully get them to stick with it.”
Production disruptions throughout the nation have been created due to plants closing, since workers are staying home for COVID-19 safety precautions. According to Nielsen data, fresh meat prices at US retail stores consequently rose by 8%.
As a result of some of the nation’s top meat suppliers closing, US President Donald Trump ordered meat processing plants to remain in operation, labeling them as “critical infrastructure.” This was done by invoking the Defense Production Act of 1950, which gives presidents the authority to control the manufacturing output of critical items during a national emergency.
Beyond Meat released their earnings report this week, with the company exceeding expectations and net sales at US$97 million compared to estimates which were at $88.2 million.
“This is the industry’s moment,” Brown told Yahoo Finance. With the “heart-wrenching” death toll due to the novel coronavirus (SARS-CoV-2) pandemic, he said: “We need to make sure that we are part of a solution.”