The coronavirus pandemic may have unleashed turmoil on the market, but for some companies, it has come as a blessing, and one of those is plant-based meat maker Beyond Meat Inc (NASDAQ:BYND). On Monday, the Beyond Meat stock surged by as much as 22% on the back of news with regards to a lucrative new distribution deal in China.
New Strategic Partnership
According to reports, the company signed a new strategic partnership with Sinodis, which is the biggest imported food distributor in the country. It goes without saying that the deal is a significant one for Beyond Meat, considering the sheer enjoyed by Sinodis.
Sinodis has as many as 4500 hotels, wholesalers, and restaurants in its network. Hence, it can potentially give Beyond Meat access to one of the biggest markets in the world. Chuck Muth, the Chief Growth Officer of the company, stated that Beyond Meat aims to make its products available on a global scale.
However, in this regard, it should be noted that this is not the first Chine focussed deal for the company. Back in April, the company had struck a deal with Starbucks by way of which Beyond Meat products were going to be made available in as many as 3000 restaurants across China.
On the other hand, the company also reached an agreement with Yum China recently by way of which Beyond Burgers are going to be tried at Pizza Hut, Taco Bell, and KFC restaurants for a limited time. Joey Wat, the Chief Executive Officer of Yum China, stated at the time that Yum sees ‘great potential’ in the plant-based meat space in China.
The company is looking to expand pretty aggressively, and its recent moves in China indicate that Beyond Meat is looking to become a major player in the Chinese alternative meat market. Considering the response from the market following yesterday’s news, it seems that investors are also growing quite optimistic about Beyond Meat’s long term prospects.