On September 8, beyond meat (NASDAQ: byNd), the first stock of artificial meat, announced that it would build a factory in Jiaxing, China, triggering a strong change in the plant meat sector of the capital market. On September 8, the two sides have completed the signing of the project, but the specific issues such as plot planning and project progress are still in-depth discussions. Chen Meiyu: in the plant food industry, plant meat products are a rising star. In 2019, vegetable meat accounts for only 1% of the $1.4 trillion global meat industry, while Barkley predicts that the market share of vegetable meat products will grow to 10% by 2029. < / P > < p > consumers are increasingly aware of the health, climate, environment and animal well-being issues arising from traditional livestock production, and as we increase the supply of delicious, nutritious and sustainable plant meat across China, we see an excellent opportunity to provide Chinese consumers with more different protein choices. < p > < p > on September 8, a historic agreement was announced by different meat customers to bring vegetable meat production to Jiaxing Economic and Technological Development Zone, marking an important milestone for us. With its rich experience in food industry, geographical location adjacent to Shanghai, developed logistics and abundant human resources, Jiaxing Economic and Technological Development Zone will be the perfect place and partner to help us realize the grand plan in China market. < p > < p > NBD: what preparatory work has been done after beyond meat registered as a company in Jiaxing in April? What kind of production capacity will the factory have? Chen Meiyu: the production facilities under construction in China draw on the best practice experience of the United States, which will be one of the most advanced equipment in the world. The safety of consumers is the primary task of other meat customers. As a food company, we have strict agreements to ensure that food production complies with global food safety standards and the guidelines of the national food quality supervision and inspection center. Other meat customers will work closely with Jiaxing Economic and Technological Development Zone to ensure compliance with these agreements. Chen Meiyu: we have three core innovation platforms, namely beef, pork and poultry. The most advanced technology production facilities in Jiaxing Economic and Technological Development Zone will adopt the “beyond meat” brand to produce vegetable beef, vegetable pork and vegetable chicken products. As work on the project is in progress, we are unable to comment on capacity or further details at this time. < / P > < p > NBD: what is the market recognition of beyond meat after it cooperates with Starbucks, KFC, Pizza Hut and retail channels such as HEMA and metro in China? What technological innovations and breakthroughs have been made in this year’s taste? Chen Meiyu: we are excited by the feedback we have received since we entered the Chinese market in April, and we have been communicating with local consumers through microblog and wechat to introduce our brand mission, nutrition and technology to them. These are the reasons why different meat customers are different from other vegetable meat products. < / P > < p > we are committed to product innovation, especially tailor-made products for China’s appetite. A few weeks ago, we announced that we would continue to work with Starbucks, not only to continue to supply the original products, but also to launch new products with lower prices, which will further achieve our goal of improving product accessibility. < p > < p > NBD: as the production and research center of the company in the future, how will Jiaxing manage the supply chain to ensure food production and sales? What raw materials will the company purchase from local suppliers in China? What are the core barriers for beyond meat to take root in the Chinese market? < p > < p > Chen Meiyu: we have been committed to improving and upgrading our products through the rapid and relevant innovation program of other meat customers, and we are very happy to bring this concern and commitment to China with localized R & D resources. Our raw materials come from many suppliers around the world, and our high-quality plant protein comes from suppliers in the United States, the European Union, China and India. < / P > < p > we realize that in order to achieve long-term success, we must win in the taste of the product, in the nutritional advantage, and ultimately in the price. If we can do these three things, we will have a great opportunity for consumers to switch from animal meat to vegetable meat. < / P > < p > NBD: what are the resistance of beyond meat in China? Are there concerns about industry standards and market acceptance? Chen Meiyu: No. All products sold in China have been manufactured in accordance with Chinese regulations, and the same agreement will apply to the production in Jiaxing Economic and Technological Development Zone. Different meat customers have successfully sold their products in China this year through cooperation with leading chain restaurants. We will work closely with regulators to comply with all regulations. (Jiaxing) Food Co., Ltd. (Jiaxing), a wholly-owned subsidiary of beyond meat, photo source: every reporter Zhang Yun photographed the location of registration. < / P > < p > NBD: once the Jiaxing factory is put into operation, how will the product pricing be determined in the Chinese market and whether the retail price will be lowered? What is the specific percentage? Chen Meiyu: one of our core strategies for promoting plant meat products is to lower the price of our products than animal protein. Although we have not yet achieved this goal due to scale constraints, we hope to make progress in this area with our growth and the realization of economies of scale. < / P > < p > at the same time, we have an internal goal of reducing the price of at least one product to the same price as that of protein from similar animals by 2024. Localized production in China will help us to price our products and other initiatives. < / P > < p > NBD: in terms of attracting consumers, will the company consider increasing more sales channels and what kind of localization plan will it have? What are the next expansion plans? Chen Meiyu: China is an important part of the long-term growth strategy of other meat customers. The company is committed to expanding our influence in this key market by investing in local production, employees, R & D and marketing, so as to establish long-term and meaningful relationship with local consumers. < / P > < p > on September 9, the reporter came to the registered address of bieyang (Jiaxing) Food Co., Ltd., a wholly-owned subsidiary of beyond meat, building 3, No. 368 Majiabang road. At present, it has become the “town living room” of Majiabang health food town in Jiaxing. The Exhibition Center on the first floor is open to the public free of charge. Visitors can have a comprehensive understanding of the general situation and planning of the food industry in the town. < / P > < p > according to the overall planning of the town, the production of health food is divided into East and west areas, where the production factories and R & D centers of different meat customers will be located. On September 8, Ethan brown, CEO and founder of beyond meat, said that after several months of fruitful cooperation and discussion, it would cooperate with Jiaxing Economic and Technological Development Zone to develop two production facilities, one of which will be one of the largest and most advanced plant meat production facilities in the world. However, the reporter did not find any construction sites for meat customers along the functional areas. The reporter came to the company registration point located on the second floor of the living room of the town, and found no other meat customer staff working here. < p > < p > inside view of the second floor of the registered address of bieping (Jiaxing) Food Co., Ltd., a wholly-owned subsidiary of beyond meat Photo < / P > < p > the person in charge of reception of the town management committee, who works on the floor, said that the project started contact last year and was registered in the town in April this year, but the epidemic situation has affected the progress of the negotiation. At present, the plant meat project factory has not been started yet, and the preliminary preparation work is still in progress. Please ask the Management Committee of the economic development zone for details. The reporter then came to the Management Committee of Jiaxing Economic and Technological Development Zone to learn that the signing ceremony of the project was held at the 6th International Economic and Trade Fair held by the economic and Technological Development Zone on September 8. However, as the negotiation is still in-depth, the relevant details need to be disclosed in the future. < / P > < p > in fact, in its August earnings report, beyond meat also mentioned the expansion of its global production facilities. As of the end of June, the company has not only self built factories and OEM factories in the United States, but also joint manufacturers in several locations in Canada and the Netherlands. In the first half of this year, beyond meat registered a subsidiary in the Netherlands and China respectively, and acquired a manufacturing plant in the Netherlands in the second quarter. < / P > < p > “and the company’s expansion plan also includes increasing international customers and conducting international expansion. In the second quarter of this year, the company announced the establishment of several new partnerships in China, and is exploring to increase partners and production facilities overseas (including Asia). However, due to the impact of the epidemic, the process of international expansion may be hindered.” Beyond meat said in its second quarter results. < / P > < p > from the perspective of news, the pace of overweight in China market is becoming more and more compact. Now in China, consumers can taste the “beyond meat” brand of plant meat products in restaurants and retail channels such as Starbucks, Metro and HEMA. Prior to that, beyond meat also launched time limited products in KFC, Pizza Hut and taco bell to solicit consumer feedback. < / P > < p > and the establishment of a factory in Jiaxing also means that beyond meat will move from sales to production in China. According to the information officially released by beyond meat, the project is expected to start trial production in a few months and put into full production in early 2021. As a production and R & D center, as well as a major market in the future, China is expected to become one of the most important markets in the world for beyond meat. Today, beyond meat is the first to enter the Chinese mainland market compared with impossible foods, and it is also in the embryonic stage of accelerated development of plant meat market, occupying the first mover advantage. Zhu danpeng, an analyst of China’s food industry, believes that the entry of multinational enterprises will force the iterative process of innovation and upgrading of China’s vegetable meat enterprises and play a promoting role. From the perspective of policy, capital, industry, channel and consumption, we are looking forward to the vegetable meat market. < / P > < p > in 2019, the concept of plant meat will set off an upsurge in the domestic market. With three Chinese traditional meat enterprises entering the transition period, Ningbo Sulian, Shenzhen Qishan and Jiangsu Hongchang enter the transition period. Not only do Chinese start-up brands such as Monday and hey Maet, which have just obtained a new round of financing, enter the vegetable meat track, but also food and beverage enterprises such as golden ham, Shuangta food, baicaowei and Naixue are seeking cooperation and layout in the industry. Even, the raw material supplier Cargill has expanded from B end to C end, and launched its own vegetable meat brand “Zhiqi” in July this year. < / P > < p > among the listed companies, Shuangta food has occupied a position in several global suppliers of beyond meat pea protein. Its biological fermentation technology for protein extraction and starch extraction is the core technology of the company, and has applied for technical invention patents. In two investor research announcements released in September, Shuangta food said that the demand for pea protein from downstream customers such as plant meat will increase significantly. At present, the company’s annual production capacity of pea protein is about 70000 tons, accounting for 30% – 40% of the global annual production capacity of pea protein, while the sales of pea protein in the field of plant meat accounts for about 10%, and its application is just beginning. < / P > < p > focusing on the plant meat business, Shuangta food has established two independent subsidiaries, which will be developed in the future