Takeaway: BYND is on the Hedgeye Best Ideas list as a SHORT

We will be hosting a Thought Leader Call on TUESDAY, MARCH 10TH at 2:00PM ET to go over our BYND SHORT thesis. 

Dial-in details:

  • Toll Free:
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  • Confirmation Number: 13698591
  • Video and Materials: CLICK HERE  

“At our core, we strive to be an innovation engine, using technology to source the core parts of meat directly from plants, avoiding GMO and artificial ingredients.” -Ethan Brown, Beyond Meat, Inc. - Founder, President, CEO & Director.

Happening Now | BYND Thought Leader Call - 3 9 20 thoughtleader1

Well, given the labels on the product, these comments from the CEO seem somewhat disingenuous.  It sounds good marketing-wise, but what is BYND doing to use less artificial ingredients?  The issue is less the plant-based foods themselves and more the manipulation of public perception and marketing done regarding plant-based meat.   

On the call last night, the CEO also said the following:

“Specifically, many of you may have seen TV, digital, and newsprint advertisements funded by incumbent industry groups that challenge the ingredients we use and the production process we employ for our plant-based meats.”

There are contradictions between the ingredients, and the CEO comments are undeniable.    What does this mean for the long-term outlook for the company?  The TAM will not materialize as the bulls and management are suggesting.  In 2020, the company will spend more money to “raise the profile of our ingredients and our process,” but at the same time, the detractors are not going to back down.  The results from Burger King and others suggest that the consumer proposition about the health benefits of eating a BYND product and not meeting the expectations of the consumer.

To help put the last point into perspective, we will be hosting a call with Rick Berman.  The call on March 10th at 2 PM will be the second time we have done a call with Mr. Berman.  Mr. Berman was the first person to call out the hypocrisy in the Chipotle non-GMO advertising strategy in 2015, which ultimately led to the demise of the company, as they were pursuing a claim about the food that was unachievable.  In many respects, the same theory holds for BYND and its advertising claims.  

The following are some details about Mr. Berman:

Richard “Rick” Berman is President of Berman and Company, a Washington, DC-based public affairs firm specializing in research, communications, and creative advertising.  Berman has founded several nonprofit advocacy organizations known for their fact-based research and their aggressive communications campaigns. A long-time consumer advocate, Rick champions individual responsibility and common sense policy. He believes that democracies require an informed public on all sides.

Berman was previously employed as Executive Vice President of Public Affairs at the Pillsbury Restaurant Group, where he was responsible for the government relations programs of all restaurant operations. He was also a labor lawyer at the United States Chamber of Commerce, the Dana Corporation, and the Bethlehem Steel Corporation.

Richard “Rick” Berman has testified on numerous occasions before committees of the various state legislatures, the U.S. Senate and the U.S. House of Representatives. The Hill, a popular Washington, DC newspaper has named him a “Star Rainmaker” on Capitol Hill. Rick has appeared on all the major broadcast and cable television networks and has organized national coalitions to address a wide variety of issues.