The market’s freshest technology stocks stumbled on Monday, performing worse than the major indexes and trailing the broader tech sector including Beyond Meat (BYND-Stock Info).
BYND stock faced a deep low after the announcement of news that its counterpart The Meatless Farm has managed to freeze a deal to sell its burgers at Whole Foods in the U.S. With the encroachment of the British rival, the shares of the company fell as much as 10%.
Beyond Meat Shares Slipped With The Arrival Of The Meatless Farm
With a startup in 2009, Beyond Meat which is a Los Angeles-based producer of plant-based meat substitutes has been one among the top performing IPO. However, the arrival of its rival has made the shares of the company go down. There has also been news that Meatless Farm would soon establish an office for operations in the New York City, as the company plans to expand its reach to the U.S. customers.
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“The market is really hitting up and it is a game changer to be working with Whole Foods Market. The US meat alternative market is currently the largest in the world and is strategically very important for the category.”
According to Rob Woodall, CEO of The Meatless Farm
The US is the fourth market outside of the UK for The Meatless Farm, which was founded in Leeds in 2017. The company also sells its meatless products in Canada, Sweden, and the UAE.
With the intentions of Meatless Farm loud and clear, it is a state of alarm for Beyond Meat. Beyond has so far sustained as the best-performing US IPO. It has also been accredited as the best performer of the year spiking as much as 700% from its offer price. But, with the news of immense competition, the shares of the company dwindled.
Competition Is Growing
While the arched rival Impossible Foods has been successful in working with Burger King, other major companies to enter the race of plant-based meat products are Tyson Foods (TYS-Stock Info) and Nestle (NSRGF-Stock Info). Keeping in mind the sensitivity of the stocks of Beyond Meat after the spilling of the news from Meatless Farm, the growing competition may pose a threat to the shares of Beyond Meat.
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Defending itself from its various competitors, the shares of Beyond Meat saw an upswing with the announcement of new ground beef product. Further, the broadcast of the availability of Beyond breakfast sandwiches at Tim Hortons across Canada helped the company sustain.
In the current scenario, it is difficult to anticipate if Beyond Meat will live up to the hype that’s sent its stock soaring.
