Key insights
- The author suggests Beyond Meat's expansion into new product categories, like the 'Beyond Immerse' drink, signals a potential shift towards becoming a diversified consumer brand akin to General Mills or Nestle. The established brand recognition could facilitate easier market entry and challenge established players in various grocery aisles. The consistent business with McDonalds also supports this long-term growth outlook.
The beyond immerse drink is quite good and fills a niche in a space lacking variety in "healthy energy/protein drinks" realm. Time will tell if this can gain ground. But it shows the company has the power/talent to launch products in a new space outside of its comfort zone.
This brings it into a new branding category - like general mills or nestle. Albeit very young, the "Beyond" name could have a future in multiple aisles of the grocery store. Cerials, energy bars, soy milk, ect. The name is known, most people are familiar with it and so it overcomes the resistance to try quite easily - especially in its market of premium buyers.
With products selling off the shelf and the consistant buisness with mcdonalds, im seeing the future in the household name establishment rather than the short term profit outlook on its current lineup. No one thought coca cola would make it early on either.
Of all the new brands on the block as far as grocery goes i think this one has the greatest potential of challenging the old guard rather than quietly constraining itself to one product category.