About a year after Beyond Meat debuted in China on Starbucks’s menu, the Californian plant-based protein company opened a production facility near Shanghai to tap the country’s supply chain resources and potentially reduce the carbon footprint of its products.
Situated in Jiaxing, a city 85 km from Shanghai, the plant is Beyond Meat’s first end-to-end manufacturing facility outside the U.S., the Nasdaq-listed company said in an announcement on Wednesday.
Over the past year, competition became steep in China’s alternative protein space with the foray of foreign players like Beyond Meat and Eat Just, as well as a slew of capital injections for domestic startups including Hey Maet and Starfield.
Beyond Meat doesn’t flinch at the rivalry. When asked by TechCrunch to comment on a story about China’s alternative protein scene, a representative of the company said “there are none that Beyond Meat considers their competitors.”
China not only has an enormous, unsaturated market for meat replacements; it’s also a major supplier of plant-based protein. Chinese meat substitute startups enjoy a cost advantage from the outset and don’t lack interest from investors who race to back consumer products that are more reflective of the tastes of the rising middle class.
Having some kind of manufacturing capacity in China is thus almost a prerequisite for any serious foreign player. Tesla has done it before to build Gigafactory in Shanghai to deliver cheaper electric vehicles. Localized production also helps companies advance their sustainability goals as it shortens the supply chain.
In Beyond Meat’s own words, the Jiaxing facility is “expected to significantly increase the speed and scale in which the company can produce and distribute its products within the region while also improving Beyond Meat’s cost structure and sustainability of operations.”
The American food-tech giant works hard on localization, selling in China both its flagship burger patties and an imitation minced pork product made specifically for the world’s largest consumer of pork. The soy- and rice-based minced pork could be used in a wide range of Chinese cuisines and is the result of a collaboration between the firm’s Shanghai and Los Angeles teams.
Besides production, the Jiaxing plant will also take on R&D responsibilities to invent new products for the region. Beyond Meat will also be unveiling its first owned manufacturing facility in Europe this year.
“We are committed to investing in China as a region for long-term growth,” said Ethan Brown, CEO and founder of Beyond Meat. “We believe this new manufacturing facility will be instrumental in advancing our pricing and sustainability metrics as we seek to provide Chinese consumers with delicious plant-based proteins that are good for both people and planet.”
Beyond Meat products can now be found in Starbucks, KFC, Alibaba’s Hema supermarket and other retail channels across major Chinese cities.