Specialist
Former C-level executive at The Meatless Farm Co
Agenda
- Demand and supply impacts of the coronavirus
- Competitive landscape update – Beyond Meat (NASDAQ: BYND), Nestlé (VTX: NESN), Impossible Foods and Unilever (LON: ULVR)
- Key industry and innovation trends
- Mid-term structural growth and profitability outlook
Questions
1.
How would you frame the size of the European plant-based meat market, and how would you segment it by raw materials or channel?
2.
Would you say that the new entrants account for a fairly minuscule part of the European meat replacement market in aggregate, compared to traditional players such as Linda McCartney and Quorn?
3.
You mentioned that trends tend to start in the US and make their way over to northern Europe and then into southern Europe. Are there any key differences or notable comparisons to draw between the European and the US markets? How mature is each meat replacement market as a percentage of total animal protein?
4.
You referenced dairy milk alternatives as a benchmark with a penetration rate of 10-15% in the total dairy milk market. Would it be safe to assume the meat equivalent statistics would be considerably lower than that, given the relative immaturity of the meat market vs the dairy market in Europe and the US? Is Europe’s penetration rate also behind the US?
5.
Could you explain the dynamics for new entrants such as Beyond Meat, Impossible Foods and The Meatless Farm Co, and how Nestlé and Unilever fit into the competitive landscape? Both have made recent acquisitions to operate in this market. Are they trying to compete with the new entrants rather than the traditional players?
6.
Could you explain the technological progression that the new entrants have brought to the category vs the traditional legacy brands?
7.
Would the pea protein or other base product come from farmers, or is that where a partner such as ADM [Archer Daniels Midland] might be used? Presumably the texturisation and the flavouring parts of the process would be where Impossible Foods and Beyond Meat might come in. Is that the way to contextualise the process?
8.
What consumer demand dynamics have driven this category to its position today?
9.
How might the coronavirus pandemic have changed consumer behaviour and demand for the category during H1 2020?
10.
You mentioned Beyond Meat and Impossible Foods’ key channels were in the food service industry in the US. Is that also the case in Europe? Do you think the coronavirus in Europe might have benefited the more traditional meat substitute brands such as Linda McCartney and Quorns, or do you think the newer entrants have benefited in the grocery channel from new trial?
11.
Do you think the coronavirus will bring any secular changes to the industry in Europe, or has it perhaps enabled an acceleration of new adoption?
12.
How would you expect the market to develop in the next three, five and 10 years? Would you expect more of the same key drivers such as consumer needs, or are there any differences?
13.
How would you assess the market opportunity for the plant-based category? Is consumption growth primarily generated through finding new adopters who become more willing flexitarians, or through driving increased or repeated consumption from existing adopters?
14.
How does adoption trend across generations? Are older consumers more concerned about the health impacts of meat, and millennials more concerned about the environment, for example?
15.
What is your take on the potential concerns around price wars in the US? Would you be worried about the commoditisation of the category in the US or Europe? How would the plant-based alternative product pricing correlate to the traditional animal protein product in Europe?
16.
Do you think the pricing environment in Europe is different to the US, in that it is more comparatively priced between the substitutes and animal protein, or has Beyond come into Europe with a similar sort of price premium as it operates in the US?
17.
You mentioned the traditional players can be priced at a premium to an animal protein equivalent and that is holding back adoption, but presumably it is more profitable for the retail channel. How does that balance out? Do you think the retail channel would prefer a more price competitive offering, or do you think they want to take that margin as it stands?
18.
How important is branding in the category? Is there an open door for private label in this category in Europe, or do you think it will be led by the branded operators?
19.
Which players would you anticipate to be key winners who could dominate the market in Europe? Could Impossible Foods, Beyond Meat or The Meatless Farm come into Europe eventually?
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