Beyond Meat has increased its sourcing of pea protein to keep up with expected sales and overcome shortages.
The plant-based meat brand has tripled its sourcing of pea protein for 2020 as a strategy focused on “conservatism” to preserve supply of its product's raw ingredient.
Ethan Brown, CEO and founder of Beyond Meat, said in a call covering third quarter results for 2019: “I just want to make sure we have enough on hand, but it also has a shelf life to it which allows us to use it over time, if need be.”
He said that there was some “conservatism” in their strategy, based on past experience of not having enough, and the increase will better prepare them for expected sales.
Following 2019 trials with KFC, McDonald’s and Subway, the firm has increased distribution and sourcing levels have been aligned with the increasing demand for the product.
Net revenues reflect increasing demand with a 250% increase to $92m in the third quarter of 2019, compared to $26.3m in the same period of 2018, according to Beyond Meat’s third quarter financial report.
The report added that an increase in gross profit was “partially offset by higher operating expenses primarily to support the company’s expanded manufacturing and supply chain operations”.
Separately, H&M Group and Ikea are conducting a joint study into chemical content in post-consumer textile recycling to ensure a “safe reuse of materials in the circular system”.
The large-scale study has been ongoing since May 2018 and has completed 8,000 tests on collected recyclable textiles.
This will inform H&M and Ikea on how to use the recycled textiles in compliance with safety standards. The findings could also help support legislation and standardisation on risk of chemicals in recycled materials.
The study covered cotton but will soon include polyester and wool, according to H&M.
Anna Biverstål, global business expert on materials at H&M, said: “Recycled materials are key elements in a circular economy. However, increasing the use of recycled materials whilst ensuring that we keep these textiles free of toxic chemicals presents a challenge for the industry.
“We’re pleased to announce that H&M Group and Ikea have joined forces in a study to address this challenge.”
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