shuangta foods is competing with beyond meat

Shuangta Foods recently disclosed a plan for the Non-public Issuance Plan of shares and planned to raise about 2.15 billion RMB (US$ 307 million). Shuangta is planning to invest 510 million RMB (US$ 73 million) in an egg-white extracting project and invest 445 million RMB (US$ 63 million) in a pea oligosaccharide extraction project. The company is also planning to invest 665 million RMB (US$ 94 million) in pea processing technology projects. The rest of 530 million RMB (US$ 75 million) will be dedicated to working capital.

As a significant supplier of peas, Shuangta is planning to develop plant-based meat applications. In 2019, Shuangta collaborated with Zhen Meat in launching plant-based moon cakes and revealed its plant-based meat plan several times. The company attracted much attention from investors. Investors have doubts because Shuangta already started developing plant-based products since 2014.

To add to this doubt, even more, Shuangta did not participate in the VeggieWorld Beijing last November. In February 2020, Shuangta signed a supplier contract with Beyond Meat. Shuangta officially became the pea supplier of Beyond Meat. Many experts are speculating whether Shuangta will abandon its plans of developing plant-based meat products.

However, on 9th March 2020, Shuangta announced that its Hong Kong subsidiary plans to set up a wholly-owned subsidiary, named Yantai Biotechnology, that focuses on plant-based meat production. As a pea supplier of Beyond Meat and Cargill, Shuangta established its own plant-based meat company, which means Shuangta is not willing to be only a pea supplier.

Why did Shuangta develop its plant-based meat while being a supplier of Beyond meat?
A similar reference is the case of cooperation between CATL and BMW. After a few years of battery supplier experience, CATL created its own electric car. Shuangta has the advantage of raw material-pea protein supply. If Shuangta can learn more about plant-based meat technology and how to create B2C marketing from Beyond Meat, Shuangta Foods will become a strong competitor in the Chinese plant-based meat market in the future.

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