Today, Beyond Meat (NASDAQ:BYND) announced the opening of its first co-manufacturing facility with Zandbergen in Zoeterwoude, the Netherlands. According to the press release, Zandbergen will own and operate the state-of-the-art facility. The facility will produce the Beyond Burger and Beyond Sausage for the EMEA (Europe, the Middle East, and Africa) region. Beyond Meat expects the new facility to help efficiently distribute its products across the region. The facility will use new packing, which will be lighter and more sustainable. The packing uses fully recyclable trays and utilizes 30% less material.
Meanwhile, Beyond Meat also completed the acquisition of its first manufacturing facility in Europe earlier this week. The facility, which is located in Enschede, the Netherlands, will be operational by the end of this year. The facility will be the first facility outside of Missouri to handle the company’s innovative process, which involves texturizing plant proteins.
In a press release, Ethan Brown, Beyond Meat’s founder and CEO, said, “Our new facility in Enschede will not only bring production closer to the consumer, representing an investment in the markets and communities we serve, but is expected to allow us to leverage local supply chains, improving our cost structure and sustainability of operations. We are excited to take this next step in bringing the nutritional and environmental benefits of our plant-based meats to the European consumer.”
Beyond Meat’s stock performance
Despite the announcement about expanding production capabilities, Beyond Meat was trading over 5% lower in the pre-market hours of trading. Weakness in the broader equality markets due to fears about the second wave of COVID-19 dragged the company’s stock price down. The S&P 500 Index was trading 2.5% lower in the pre-market hours of trading. Beyond Meat stock has more than tripled from its March lows. So, investors might be booking their profits, which also contributed to the stock fall.
Meanwhile, Beyond Meat has returned 106.6% YTD as of Wednesday. The strong first-quarter performance and aggressive expansion led to a surge in the company’s stock price. So far this year, Beyond Meat has outperformed its peers and the broader equity markets. The S&P 500 Index has declined by 1.3% YTD. Tyson Foods (NYSE:TSN) and Kellogg (NYSE:K) have fallen by 29.1% and 3.8%, respectively. Read Is Beyond Meat a ‘Buy’ after Its Recent Pullback? to learn more.