Last Week’s Moves
BLS Cash Index 583.10 (+0.11%)       BLS Industrials Index 606.04 (-0.03%)       Â
BLS Foodstuffs Index 551.06 (+0.32%) Â Â BLS Fats and Oils Index 822.62 (-0.47%)Â Â Â
BLS Livestock Index 729.70 (+1.79%)
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Welcome to your weekly food & beverage report, where we cover everything you’ll need to know for the week ahead. This week, grain shipments from Ukraine leave Odessa for countries in need, key players in the industry adjust strategy to account for climate change, and inflation leads to rocky share prices for one alternative meat company. Let’s dig in.Â
Grain is finally shipped out from Ukraine, but food insecurity worries aren’t likely to budge
Last Monday, the Razoni left Ukraine’s Odessa port with the first load of grain since the beginning of Russia’s war in Ukraine thanks to an agreement brokered by the UN.The shipment was incredibly welcome by Turkey, Somalia, Indonesia, and China as these countries are heavily reliant on Ukrainian grain to meet their daily needs. However, despite the shipment and resulting drops in grain prices, experts are saying there won’t be a quick fix to the food crisis.
- Historic hunger… Global hunger has skyrocketed, increasing from 135 million people facing acute food insecurity in 2019 to 345 million in 2022, according to data from the World Food Programme (WFP). These numbers represent a crisis far worse than seen in 2007-2008 and 2010-2012, both of which contributed to riots around the world and revolutions in the Middle East.
- Dire straits… The Russian blockade directly resulted in skyrocketing prices of grain, pushing millions into hunger as over 20 million metric tons of Ukrainian wheat and corn were parked in Odessa. Added on top of the climate crisis, conflict, food export restrictions, spiraling costs, and years of pandemic-related disruptions, the issue of food insecurity is unlikely to be easily mitigated.
As climate change becomes impossible to ignore, corporate sustainability is top of mind for food and beverage companies- however amid high inflation, costs count too
In Mother Earth’s good books… The trend leading this year’s food and beverage industry growth is sustainability. Innova Market Insights found at the beginning of the year, for the first time ever, consumers participating in the market researcher’s Lifestyle and Attitude Survey said that the health of the planet is their top global concern, as opposed to the health of the population.
- Environmentalism exponentiates… Innova specifically found that product launches carrying environmental claims are growing three times faster than total food and beverage activity. Consumers are officially seeing and experiencing the impacts of climate change, and now expect companies to be proactive in mitigating effects.
- Trying to tread lightly… Food and beverage manufacturers have been working towards greener practices, especially within manufacturing processes or packaging. Whether it’s the use of renewable energy, zero-waste supply chains, or participation in the carbon market, consumers are paying attention to how food and beverage companies are managing their environmental footprint.
Beyond bad news… Beyond Meat (BYND) has lowered its 2022 revenue forecast thanks to broader economic uncertainty and consumers trading down to cheaper proteins. In the same report, the company also announced that it will be trimming its workforce by 4%. The layoffs are expected to save around $8 million annually, however the company will also be spending $1 million in separation costs that will impact third-quarter results.Â
- Revenue revision… Beyond Meat also reported a wider-than-expected loss along with weak second quarter sales, resulting in shares falling 1% in extended trading. Beyond expects revenue between $470-520 million, down from its previous forecast of $560-620 million.
- Blame game… Net sales dropped 1.6% to $147 million, with the company citing changes in foreign exchange rates, increased discounts, and sales to liquidation channels as factors contributing to the decline.
Other stories…
- Fiesta time… Taco Bell (YUM) is bringing back its Mexican Pizza on September 15, this time around as a permanent menu item.
- Unleashing the beast… Monster Beverage (MNST) is planning on its first alcoholic product launch for later this year. The Beast Unleashed will contain 6% alcohol by volume and should be available nationwide by the end of 2023.
- Groundbreaking… Tyson Foods (TSN) has broken ground on its $180 million 170,000-square-foot expansion of its prepared foods facility in Caseyville, Illinois.
That’s all we have for you this week, do you have anything for us? We’d love to hear from you with stories or recommendations for new sections to include! Drop us a line at news@barchart.com with any feedback or input.Â
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