Bunge Ltd. recently disclosed the 1.6% stake it had purchased in the fast-growing fake-meat startup Beyond Meat, reports Reuters.
The play looked smart after the stock surged more than 250% since the faux burger and sausage maker’s initial public offering in May. Indeed, Beyond Meat’s market capitalization of $9.9 billion is now larger than Bunge’s.
Bunge’s investment is just one example of how grain traders and seed companies are trying to capitalize on a market that now accounts for 5% of U.S. meat purchases -- a share expected to triple over a decade, according to investment management firm Bernstein.
ADM and privately-held grain trader Cargill are selling processed peas and soy proteins to consumer food companies and restaurants that use them to make vegetable burgers, sausages, fish substitutes and other faux-meat products. They are also getting into the business through acquisitions and corporate partnerships.
Read the full report at Reuters.
