Beyond Meat, whose rivals include US -based Impossible Foods, is likely to face increasing competition in the niche market as companies like Nestlé and Tyson Foods ready their own line of products. As of Friday morning, shares were trading at Dollars 128 per share, representing over a 400% increase since then, making Beyond Meat the best performing IPO this year so far.
But Brown is not cowed by rivals, he said.
In the case of Impossible, demand for its plant-based burger has outstripped its ability to supply it.
In its first earnings report as a public company, the maker of its signature Beyond Burger posted a sharp increase in sales common for a young, fast-growing company.
Shares of Beyond Meat Inc surged 27% on Friday after the vegan burger maker forecast that sales would more than double overall in 2019 after they tripled in the first quarter.
Beyond Meat is being watched closely before it reports earnings after the bell Thursday.
The Company reported that revenue grew by 215% year-over-year, largely due to its 304.4% growth in its Fresh platform.More news: Russian journalist on drugs charge in hospital as supporters decry case
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"We're at a point where plant-based meats have become a segment of their own, and by the end of the year we'll have a section exclusively dedicated to these products inside the meat department", said Beretta.
But while Beyond Meat requests stores sell its products next to real meat, there are no contractual obligations on product placement, according to interviews with nine retail chains. Losses could continue to be in the picture as Beyond Meat expands distribution, invests in infrastructure and creates new products.
"Competition over placement is clearly heating up as everyone vies for a spot in the meat case", said Phil Lempert, an expert on retail food trends who advises companies on food branding and consumer behaviour.
The Californian firm attributed the revenue growth to increased sales of its Beyond Burger and heightened demand from new and existing customers.
However, Impossible has reached out to distributors and restaurants to let them know that an Impossible shortage is "entirely possible" and that demand is 'outpacing the company's manufacturing capabilities, ' as first reported by Eater. Beyond Meat is now valued at almost $6 billion.
Tyson Foods Inc, the largest USA meat processor, is also working on its own line of alternative protein products after it sold its stake in Beyond Meat in April.
The better-than-expected results and forecast led the stock to soar almost 21% in extended trade on Thursday. Last week, it took a step toward expansion, announcing a partnership with Dutch company Zandbergen World's Finest Meat.