The COVID-19 pandemic has been kind to Beyond Meat and Impossible Foods, two companies that produce plant-based substitutes for hamburger, poultry and now pork (Impossible Foods recently introduced its pork substitute product).
Supermarkets are expanding the shelf space given to meat substitutes as a response to coronavirus-related supply-chain disruptions at meat processing plants. Interruptions have resulted in meat price spikes, and a jump in Beyond Meat’s BYND, -7.31% stock price.
Nevertheless, investors should temper their enthusiasm. No one knows whether the surge in interest and demand for plant-based meat substitute products will be sustained beyond the COVID-19 crisis. But here’s why you should be skeptical.
Even if consumers switch to other protein sources to avoid paying higher prices for meat products, historically researchers have found these impacts to be relatively modest: For example, for the broad “meat” category, a 5% increase in the price of beef only reduces overall sales to consumers by about 2%. And retail prices for many cuts of beef and poultry are already beginning to decline from peak levels as packing plants reopen and meat production increases.
In addition, consumers as a group are slow to change their preferences when buying food. This is partly because of an “age cohort effect” where children and teenagers may be happy to try an “impossible meat” burger, but their parents — especially their dads — would
Community Center to distribute food July 1 | Community – Mountain Mail Newspaper
Dairy Product Giveaway Coming to Hopkinsville – wkdzradio.com
How Food and Beverage Packagers Can Navigate the New Normal – Packaging Digest