Plant-based meat company Beyond Meat (BYND 13.74%) is launching a new retail product called Beyond Meatballs. Select grocery stores across the country will begin carrying the new product as early as this week. The company's various products are already found in over 26,000 U.S. retail outlets.
However, some meatball lovers could take a bite of Beyond Meatballs before they land in grocery stores. In Los Angeles and New York City, Beyond Meat is setting up The Beyond Meatball Shop. For one day only, hungry fans can make reservations for take-out menu items featuring the new product, while supplies last.
Beyond Meatballs is the third new retail product launch of 2020. In March, Beyond Meat announced the Beyond Breakfast Sausage product line, available in both classic and spicy flavors. Then in June, the company announced the Cookout Classic, a value pack of ten hamburger patties in contrast to the typical two-pack.
Both of the previous product launches have been instrumental to Beyond Meat's success in 2020. With restaurants struggling because of COVID-19, the company's food-service sales have been negatively impacted. Food-service segment sales in the U.S. are only up 15% year over year in the first half of 2020. However, spending shifted to retail outlets, with U.S. retail-segment sales up a whopping 180% over the same time frame. Beyond Breakfast Sausage played a roll in this success, and the company will hope for a positive contribution from Beyond Meatballs.
While the Cookout Classic has also played a roll in Beyond Meat's retail success, its real contribution comes in lowering the company's cost structure. By reducing packaging costs, the price per pound for Beyond Meat was within 20% of traditional animal protein in the second quarter of 2020, a key improvement for this growth stock.