Asia Consumer Sector Research, Investory

Devi Subhakesan

Asia Consumer Sector Research

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a> share price dropped nearly 7% on news reports that Impossible Foods would cut the prices of its patties by 20% at grocery stores in the US as they ramp up production. It had earlier announced a 30% price cut in the International markets - Canada, Singapore, and Hong Kong. In an unrelated event, Bloomberg <a href="https://www.bloomberg.com/news/articles/2021-02-01/mcdonald-s-quietly-rolls-out-mcplant-burger-in-test-markets?source=content_type%3Areact%7Cfirst_level_url%3Anews%7Csection%3Amain_content%7Cbutton%3Abody_link&amp;sref=SVEekGzB" target="_blank" rel="noopener">reported</a> that <a href="https://www.smartkarma.com/entities/mcdonald-s-corp" target="_blank" data-smartkarma-citation="entities:1425:1" rel="noopener">Mcdonald's Corp (MCD US)</a> has begun selling the McPlant burger in Denmark and Sweden on a trial basis; the report added that McPlant, which McDonald’s reportedly co-developed with Beyond Meat is made from pea-based protein, according to McDonald’s <a href="https://www.mcdonalds.com/dk/da-dk/product/mcplant.html#collapseOne" target="_blank" rel="noopener">Danish</a> and Swedish websites. </p>
<p>Beyond Meat has not provided any details of its collaboration with <a href="https://www.smartkarma.com/entities/mcdonald-s-corp" target="_blank" data-smartkarma-citation="entities:1425:1" rel="noopener">Mcdonald's Corp (MCD US)</a> in Europe. However, we see this as a notable positive given it highlights (1) the expanding market demand for plant-based products and (2) <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)'s</a> competitive advantage over <a href="https://www.smartkarma.com/entities/impossible-foods-inc" target="_blank" data-smartkarma-citation="entities:28361:1" rel="noopener">Impossible Foods Inc</a> in international markets given its different input profile. In the note below we discuss our detailed view on these reported developments.</p>

Beyond Meat (BYND US) share price dropped nearly 7% on news reports that Impossible Foods would cut the prices of its patties by 20% at grocery stores in the US as they ramp up production. It had earlier announced a 30% price cut in the International markets - Canada, Singapore, and Hong Kong. In an unrelated event, Bloomberg reported that Mcdonald's Corp (MCD US) has begun selling the McPlant burger in Denmark and Sweden on a trial basis; the report added that McPlant, which McDonald’s reportedly co-developed with Beyond Meat is made from pea-based protein, according to McDonald’s Danish and Swedish websites. 
Beyond Meat has not provided any details of its collaboration with Mcdonald's Corp (MCD US) in Europe. However, we see this as a notable positive given it highlights (1) the expanding market demand for plant-based products and (2) Beyond Meat (BYND US)'s competitive advantage over Impossible Foods Inc in international markets given its different input profile. In the note below we discuss our detailed view on these reported developments.

Beyond Meat: McPlant Trial in Europe Is More Important than Impossible's Price Cut

<p>In this note, we discuss how <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)'s</a> stock gets an unanticipated stroke of positive lift from a win-win with  <a href="https://www.smartkarma.com/entities/pepsico-inc" target="_blank" data-smartkarma-citation="entities:4967:1" rel="noopener">Pepsico Inc (PEP US)</a> to produce and market plant-based protein snacks and beverages. As consumer brands globally strive to align themselves with the "Better for You and Planet too" value that resonates strongly with younger customers, plant-based foods are clearly in focus. <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a> with its widely recognized brand presence in plant-based protein is well-positioned to benefit from the rising demand for plant-based foods. </p><p>We believe this deal could help Beyond accelerate growth in the retail segment, thus widen product reach and enhance product visibility. Although operational or financial details of the deal are not available yet, in the note below we look at what it could mean for either parties and surmise that it could be a win-win for both. </p>

In this note, we discuss how Beyond Meat (BYND US)'s stock gets an unanticipated stroke of positive lift from a win-win with  Pepsico Inc (PEP US) to produce and market plant-based protein snacks and beverages. As consumer brands globally strive to align themselves with the "Better for You and Planet too" value that resonates strongly with younger customers, plant-based foods are clearly in focus. Beyond Meat (BYND US) with its widely recognized brand presence in plant-based protein is well-positioned to benefit from the rising demand for plant-based foods. We believe this deal could help Beyond accelerate growth in the retail segment, thus widen product reach and enhance product visibility. Although operational or financial details of the deal are not available yet, in the note below we look at what it could mean for either parties and surmise that it could be a win-win for both. 

Beyond Meat: A Win-Win Deal with PepsiCo to Sell Plant-Based Snacks, Drinks

<p>In this note, we discuss the operational and investment outlook going forward as the stock hits the lower end of historical trading range. <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a>'s share price has been sliding since its weak 3QFY20 results and is nearly 60% below its highs of October 2020; YoY, the stock is up 6%. We also look into its upcoming quarterly results and why the share price of the leading player in Plant-based protein has slipped even as customer interest and demand for alternative protein has been higher than ever. </p><p>Alternative Protein segment has gained significant traction over the last year as consumers increasingly sought out healthier eating options, including reducing consumption of animal products. However, established players like <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a> and <a href="https://www.smartkarma.com/entities/impossible-foods-inc" target="_blank" data-smartkarma-citation="entities:28361:1" rel="noopener">Impossible Foods Inc (1249597D US)</a>, that have meaningful exposure to Institutional sales were caught in a bind as pandemic-led restrictions hit regular operations of F&amp;B retail players. Efforts to pivot by repackaging and redirecting the products to retail at discounted prices wasn't good enough to make up for the shortfall leading to a weak third quarter. Going forward, expect sales growth to stabilise and normalise across segments.</p>

In this note, we discuss the operational and investment outlook going forward as the stock hits the lower end of historical trading range. Beyond Meat (BYND US)'s share price has been sliding since its weak 3QFY20 results and is nearly 60% below its highs of October 2020; YoY, the stock is up 6%. We also look into its upcoming quarterly results and why the share price of the leading player in Plant-based protein has slipped even as customer interest and demand for alternative protein has been higher than ever. Alternative Protein segment has gained significant traction over the last year as consumers increasingly sought out healthier eating options, including reducing consumption of animal products. However, established players like Beyond Meat (BYND US) and Impossible Foods Inc (1249597D US), that have meaningful exposure to Institutional sales were caught in a bind as pandemic-led restrictions hit regular operations of F&amp;B retail players. Efforts to pivot by repackaging and redirecting the products to retail at discounted prices wasn't good enough to make up for the shortfall leading to a weak third quarter. Going forward, expect sales growth to stabilise and normalise across segments.

Beyond Meat (BYND US): Beaten Down Stock in an Upbeat Segment. What, Now?

<p><a href="https://www.smartkarma.com/entities/mcdonald-s-corp" target="_blank" data-smartkarma-citation="entities:1425:1" rel="noopener">Mcdonald's Corp (MCD US)</a> finally announced its plans to launch plant-based products starting next year under the brand McPlant. It clarified that <em>McPlant is crafted exclusively for McDonald's by McDonald's, </em>ending speculation that it might source products from leading plant-based meat (PBM) players <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a> or <a href="https://www.smartkarma.com/entities/impossible-foods-inc" target="_blank" data-smartkarma-citation="entities:28361:1" rel="noopener">Impossible Foods Inc (1249597D US)</a>.  This, together with <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a> 's weaker than expected Q3 sales, could weaken the share price further. However, we note that the wider acceptance and preference for plant-based meat products since the pandemic is a long term positive for established players like <a href="https://www.smartkarma.com/entities/beyond-meat-inc" target="_blank" data-smartkarma-citation="entities:28065:1" rel="noopener">Beyond Meat (BYND US)</a>. In the note below, we discuss (1) why we think Beyond Meat has an advantage in the burgeoning PBM segment, even as its near term share price outlook could be weak. (2) stock's investment outlook (3) its Q3 results.</p>

Mcdonald's Corp (MCD US) finally announced its plans to launch plant-based products starting next year under the brand McPlant. It clarified that McPlant is crafted exclusively for McDonald's by McDonald's, ending speculation that it might source products from leading plant-based meat (PBM) players Beyond Meat (BYND US) or Impossible Foods Inc (1249597D US).  This, together with Beyond Meat (BYND US) 's weaker than expected Q3 sales, could weaken the share price further. However, we note that the wider acceptance and preference for plant-based meat products since the pandemic is a long term positive for established players like Beyond Meat (BYND US). In the note below, we discuss (1) why we think Beyond Meat has an advantage in the burgeoning PBM segment, even as its near term share price outlook could be weak. (2) stock's investment outlook (3) its Q3 results.

McDonald's Plans to Launch McPlant. What Does It Mean for Beyond Meat (BYND US)?

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

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Research Reinvented

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<p>In this Smartkarma Webinar, we speak to <a href="https://uk.linkedin.com/in/david-huggins-cfa-821a625b" target="_blank" rel="noopener">David Huggins, CFA</a>, Nutrition Portfolio Manager at Blackrock’s BGF Nutrition Fund. David will discuss current trends in food and nutrition, including plant-based protein, changing consumer behaviour, and the future of food technology.</p>
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<h3>The webinar was hosted on Wednesday, 29/July/2020, 5.00pm SGT/HKT.</h3>
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<p><a href="https://share.hsforms.com/1H9pFZOB-RF2J00kbvMmxcw2c5gj?zoom_webinar_id=85622094500" target="_blank" rel="noopener"></a>Listen to the session here:</p>
<p><iframe src="https://www.youtube.com/embed/5Z0m5LzFO7E" width="560" height="315" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe>Or subscribe to the <a href="https://podcasts.apple.com/us/podcast/the-smartkarma-podcast/id1531369786" target="_blank" rel="noopener">Smartkarma Podcast</a> and listen on the go:</p>
<p><iframe src="https://open.spotify.com/embed-podcast/episode/4r3UkBO0G8XsVBGcFOj2jz" width="100%" height="232" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe></p>
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<p>David is co-portfolio manager of the BGF Nutrition fund, a Blackrock sustainable thematic fund. Areas of expertise include nutrition, food &amp; beverage, agriculture, and cannabis/CBD. He has a solid track record in public equity investing and is skilled in bottom-up investment analysis, modelling, and big-picture thinking. He graduated from the University of Bristol and is a CFA Charterholder.</p>
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In this Smartkarma Webinar, we speak to David Huggins, CFA, Nutrition Portfolio Manager at Blackrock’s BGF Nutrition Fund. David will discuss current trends in food and nutrition, including plant-based protein, changing consumer behaviour, and the future of food technology.



The webinar was hosted on Wednesday, 29/July/2020, 5.00pm SGT/HKT.



Listen to the session here:
Or subscribe to the Smartkarma Podcast and listen on the go:



David is co-portfolio manager of the BGF Nutrition fund, a Blackrock sustainable thematic fund. Areas of expertise include nutrition, food &amp; beverage, agriculture, and cannabis/CBD. He has a solid track record in public equity investing and is skilled in bottom-up investment analysis, modelling, and big-picture thinking. He graduated from the University of Bristol and is a CFA Charterholder.


Smartkarma Webinar | Beyond Food: No Longer Impossible

United States

Impossible Foods Inc. provides food products. The Company offers meat products from plants. Impossible Foods serves customers in the United States.

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Impossible Foods Inc (1249597D US)

Beyond Meat: McPlant Trial in Europe Is More Important than Impossible's Price Cut

Beyond Meat enjoys a competitive advantage over Impossible Foods in International markets. Mcdonald's trial of McPlant in Europe is a significant...

Devi Subhakesan

Beyond Meat: A Win-Win Deal with PepsiCo to Sell Plant-Based Snacks, Drinks

Discuss how Beyond Meat (BYND US) gets an unanticipated stroke of positive lift from a win-win deal with Pepsico to sell Plant-based snacks and...

Devi Subhakesan

Beyond Meat (BYND US): Beaten Down Stock in an Upbeat Segment. What, Now?

We discuss Investment outlook - Long and Short term - for Beyond Meat as it trades close to the lower end of the historical valuation range.

Devi Subhakesan

McDonald's Plans to Launch McPlant. What Does It Mean for Beyond Meat (BYND US)?

Mcdonald's plans to launch its own plant-based products raising investor concerns about the exclusivity of players like Beyond Meat. We attempt to...

Devi Subhakesan

Smartkarma Webinar | Beyond Food: No Longer Impossible

In this Smartkarma Webinar, we speak to David Huggins, CFA, Nutrition Portfolio Manager at Blackrock’s BGF Nutrition Fund. David will discuss...

Smartkarma Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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