Regardless of what you
want to call it, these 5 companies are taking advantage of the move to meatless
alternatives, with serious potential to make a lot of money for investors in
the long run:
·
Beyond
Meat (NASDAQ:BYND)
·
Global Diversified Marketing Group (OTCMKTS:GDMK)
·
Kellogg (NYSE:K)
·
Mondelez
International (NASDAQ: MDLZ)
·
Tyson
Foods (NYSE:TSN)
As a result of changes in
consumer tastes, companies have invested a total of $16 billion in plant-based
meat, egg and dairy products. Let’s look at how stockholders can make that
money work for them.
On to the Top 5:
Global Diversified Marketing Group Inc (OTC:
GDMK)
GDMK is
moving to add all new plant based gourmet snack food choices to the company’s
already successful product lines. Market trends are clearly demonstrating that
health and environment conscious consumers are actively seeking plant-based
food choices today as it has now been established that such alternatives can
offer significant benefits to individual wellbeing and the environment in
general. Global Diversified Marketing Group is responding to this new awareness
in consumers with plans to launch the company’s first plant-based gourmet snack
options in the first quarter of 2021.
At this time plans are being worked out with co-packers
and other marketing associates to decide on the best possible specific product
choices. Immediate emphasis will be on gourmet cookies and snacking bars, two
of Global Diversified’s bestselling lines. Initial marketing will be via the
company’s established sales division, partner store sites as well as eCommerce
channels including Amazon.com, the world’s largest retailer.
Ø GDMK
is on track to do 2 Million In revenues this year
Ø GDMK
is a well Established Food Producer Serving North American & Europe.
Ø Amazon.com Sales have
Soared 151 Percent in the Last 30 Days Exceeding Expectations with an Increase
of Over 451 Percent in the Last 12 Months
Ø GDMK partners with Ruttensteiner to distribute its folio of
products in Austria and European Union markets.
Ø Relationships include Lidl, Hofer, Spar, Rewe Austria, Migros
and Aldi
Ø Signed
Agreement with Distribution Partner, Grocery Outlet, an Emerging High-Growth
Industry Leader.
Ø New
Secured Distribution to Bring Premium Food Products into Homes Throughout the
USA.
Ø Attractive
Share Structure with Only 13 Million OS.
Ø GDMK Secures New
Distribution by Expanding into Restaurant Depot Stores Nationwide
About Global Diversified Marketing Group
Headquartered in Island Park, NY - Global Diversified
Marketing Group Inc operates as a global multi-line consumer packaged goods
(“CPG”) company with branded product lines and is a food and snack
manufacturer, importer and distributor in the United States, Canada, and
Europe. The Company operates in the snacks market segment and offers Italian
Wafers, Italian filled Croissants, French Madeleines, Wafer Pralines,
shelf-stable Macarons, and other gourmet snacks. The company sells its products
directly through various distribution channels comprising specialty, grocery
retailers, food-service distributors, direct store delivery (“DSD”) as well as
the vending, pantry, and the micro-market segment. For more information on GDMK
visit the company’s website at: https://360worldsnacks.com/
Mondelez International (NASDAQ:
MDLZ)
Though hardly a household
name itself, Mondelez International owns plenty of brands that are, from Oreo
to Toblerone. In recent months, Mondelez made a splash, and considerable
profits, as more people sought out stress-managing sweet and salty snacks during the COVID-19 pandemic. The
company's Q1 revenue soared 15.1% in the North American market, showing it's
well-positioned to grow even under the stress of a major downturn.
While Mondelez's ability
to stay profitable during an economic crisis is a plus for investors --
especially given the possibility the coronavirus will spike again in autumn
-- there are plenty of longer-term reasons to consider adding to one's
position in the cookie, candy, and cracker producer, too.
At first glance,
Mondelez's total revenue figures appear to be stalled. Total revenue for 2016
was $25.9 billion, while in 2019 the metric came in at $25.8 billion. The years
in between varied by only a few million dollars. A closer look, however,
reveals the company's operating margin, aka return on sales, has grown over the
years, from approximately 8% in 2009 to roughly 10.5% in 2017 and over 14% in
recent quarters.
Mondelez is continuing to
improve its return on sales through an ongoing strategy of lowering input costs
and streamlining its distribution. The net income available to shareholders has
grown from $1.6 billion in 2016 to $3.8 billion in 2019, raising diluted
earnings per share from $1.05 to $2.65 over the same period.
Mondelez has also
provided reliable dividends for many years. According to charts published as
part of the company's presentation at the 2020 Consumer Analyst Group of New
York conference, organic net revenue and several other important metrics are
flourishing:
Beyond Meat (NASDAQ:BYND)
The IPO success of Beyond
Meat (NASDAQ:BYND) The plant-based food company went public on
May 1, 2019, at $25 a share, selling 11.1 million units of its stock for net
proceeds of $252 million, including the underwriters’ over-allotment. Three
months later on Aug. 2, 2019, insiders sold 3.3 million shares at
$160 per share. The company sold 250,000 shares to the public, raising $36.8
million in net proceeds.
The company wisely waived
the 180-day lock-up period for its main investors so that they could cash out a
portion of their shares while they were up almost six-fold.
Beyond Meat’s Q1
2020 net revenues increased 141% year-over-year to $97.1 million, while
its gross profit improved to $37.7 million (38.8% gross margin), for a net
profit of $1.8 million, a 127% increase over the same period last year.
More importantly, on
March 11, 2020, Beyond Meat rolled out its new Beyond Breakfast
Sausage product. With 33% fewer calories than a leading brand of pork
sausage patties, these are bound to be a hit with health-conscious consumers.
According to Nielsen, 98% of consumers who buy
plant-based meat, also buy animal meat. In fact, the Plant Based Foods
Association suggests plant-based meat sales increase by 23%, on
average, when put in the meat department rather than the vegetable section.
The “vegan wave” is now the flexitarian wave.
Tyson Foods (NYSE:TSN)
Originally invested in
Beyond Meat in 2016, buying 5% of the plant-based meat company. It upped
its stake at the end of 2017 as part of a $55 million investment
round.
Unfortunately for Tyson
shareholders, the company didn’t make it to the ball, selling its
shares in April 2019 for an undisclosed amount after Tyson CEO Noel White
decided the company would create its own plant-based protein line. Tyson’s
brand is called Raised & Rooted.
It competes with Beyond
Meat. However, while its chicken nugget product is meatless, its burger
contains Angus beef as well as pea protein isolate.
According to TSN’s
chief marketing officer, “While most Americans still choose meat as their
primary source of protein, interest in plant and blended proteins is growing
significantly.”
By November of last year,
Raised & Rooted products had made it into 7,000 stores across the
U.S., almost double the number of stores carrying the brand in
August.
Despite the increased
rollout, Tyson didn’t make reference to Raised & Rooted in either
its Q2 2020 10-Q or quarterly conference call with
analysts.
However, Tyson did
mention Raised & Rooted in its 2019 Sustainability Report, which was
released on May 27, 2020.
Kellogg (NYSE:K)
When most people think of
Kellogg, the first thing that comes to mind is likely cereal: Special K,
Frosted Flakes, Mini-Wheats, etc. However, it has owned a vegetarian food brand
called MorningStar Farms since acquiring the business in 1999.
The company sells
over 90 million pounds of faux meat a year, with about one-third of
that volume in fake burgers and the remaining two-thirds from other products
such as chicken and sausage alternatives. Estimates suggest that MorningStar generates
$450 million in annual revenue, about 1.3 times the $355 million Beyond Meat
has sold over the trailing 12 months.
Beyond Meat is valued at
22 times sales. If MorningStar Farms were given the same valuation, it would be
worth $10 billion to Kellogg, about 41% of the company’s current market
cap.
And it’s clear that
Kellogg is aware of MorningStar Farm’s potential. The big question is whether
management is smart enough to take advantage of the popularity of meatless
products.
On April 30, 2020, Kellogg
announced on its quarterly conference call that it had delayed the
launch of its “Incogmeato” burgers from the end of the first quarter to
sometime in the second half of the year due to the novel coronavirus. The burgers will now be launched at the same
time as its new plant-based sausage products later in 2020.
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