Please ensure Javascript is enabled for purposes of website accessibility

Beyond Meat Set for Big Expansion in China With New Distribution Deal

By Eric Volkman – Jun 9, 2020 at 6:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The arrangement complements a recently announced pilot project with fast food restaurants in the country.

Beyond Meat (BYND -5.84%) is in front of significant expansion in Asia. The alt-protein foods maker has signed a distribution deal with China's Sinodis, a company that specializes in distributing foreign comestibles in the country.

Sinodis, which revealed the news in a press release published on Monday, distributes goods to around 4,500 customers throughout China, including restaurants, wholesalers, and hotels. It says it is the nation's leading distributor of imported food products.

A Beyond Meat burger served with french fries.

Image source: Beyond Meat.

The Beyond Meat/Sinodis arrangement covers a pair of the former's more popular products, Beyond Beef and the Beyond Burger. Both have quickly made inroads on the American market in supermarket chains and, in the case of Beyond Burger, in restaurants as a menu item.

Sinodis quoted Beyond Meat's chief growth officer, Chuck Muth, as saying: "China has a large population and a strong interest in plant protein products. We are committed to strengthening infrastructure to support our long-term China Development strategy."

The Sinodis agreement comes shortly after Beyond Meat announced another China deal. Last week the company revealed that Yum China would introduce some the company's products in several of its signature restaurants in the country for a limited time. The Beyond Burger has been made available at five KFC locations, and in tacos sold at three Taco Bell outlets. Pizza Hut is also offering the Beyond Burger.

Investors might be adopting a wait-and-see attitude about Beyond Meat's latest development. On Tuesday, the company's shares closed down by almost 2.9%, a steeper fall than those suffered by many fellow consumer goods stocks, and the major equity indexes.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Beyond Meat, Inc. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Beyond Meat Stock Quote
Beyond Meat
BYND
$14.26 (-5.84%) $0.88
Yum China Holdings, Inc. Stock Quote
Yum China Holdings, Inc.
YUMC
$49.16 (-1.49%) $0.74

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
338%
 
S&P 500 Returns
108%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.