The Japanese trading house Mitsui & Co. Ltd, which has a small stake in California-based Beyond Meat, announced that the plant-based meat alternative company backed out of its plan to penetrate the Japanese market because the company wants to focus more on its US customers.
Though not officially acknowledged as the reason for backing out, Beyond Meat had been grappling with its production capacity because of interruptions in protein supply.
On May 2, 2019, Beyond Meat became 2019's most successful IPO (initial public offering) to date when the startup had its stock price rise to 163% from $25 per share to around $64 in just one day beating faux-meat rivals like Impossible Foods.
However, Impossible Foods has partners like Burger King, Red Gourmet Burgers, Cheesecake Factory and Hard Rock Care.
Knowing the demand for meat alternatives, a Mitsui spokeswoman clarified on August 10, that the expansion had not been offboarded.
Top market research and consulting firm Coherent Market Insights report that the world's vegan market is going to go over $6.5 billion by 2026 with a compound annual growth rate of 7.6 percent due to health risks linked with animal meat.
Beyond Meat's chief growth officer, Chuck Muth, on August 10 likewise said that the company is looking "forward to bringing our revolutionary products to more countries across Asia, including Japan."
Beyond Meat already successfully launched in Hong Kong, Taiwan, Macau, Singapore, Korea, Philippines, New Zealand, and Australia.
Acknowledging the company's plans to penetrate different markets, Beyond Meat says the company is just being "strategic" to make sure of the successful introduction of Beyond Meat products.
Europe, leading the world's vegan market at 33 percent in 2017, is expected to keep its reputation of being the top market for meat alternatives.
Beyond Meat made the first plant-based burger that cooks, satisfies and looks like real beef but has no soy, gluten or GMOs (genetically modified organisms).
Its pea-based products currently include Beyond Burger, Beyond Beef, Beyond Sausage, and Beyond Beef Crumbles and can be found in supermarkets and restaurants.
Fast-food chains like Del Taco, Carl's Jr and Dunkin' Brands' sausage breakfast sandwich in Manhattan are offering Beyond Meat products.
Even the American ingredient-and-recipe meal kit service, Blue Apron, said it would feature Beyond Meat products in its recipes.
Likewise, Beyond Meat inked a deal with Zandbergen World's Finest Meat to start making its plant-based meat alternatives in Europe in 2020, particularly in the Netherlands.
Beyond Meat, stocks had a 52-week high of $239.71 and a 52-week low of $45.00. Its shares were down at $162.10 in Friday's pre-market session.
