CNBC’s Jim Cramer Urges People to Invest in Vegan Meat

Jim Cramer, host of CNBC’s “Mad Money” and a former hedge fund manager, says that investors should not ignore the rising popularity of plant-based meat.

In two recent episodes of CNBC’s business show “Squawk on the Street,” Cramer discussed Los Angeles-based vegan meat brand Beyond Meat. He stated that the company—which uses pea protein to make “bleeding” meat-like burgers and realistic sausages—has the potential to grow as big as Amazon or Facebook.

While many restaurants have closed across the United States, retail demand for its products is “strong,” said Cramer. The company’s stock has risen nearly 60 percent so far in 2020.

Cramer said on Thursday: “It’s all going Beyond Meat’s way. And what is Beyond Meat doing? They’re cutting prices.”

“So the price of meat is going to go up for the regular meat, and the protein that skips the whole meat chapter is going to do well,” he continued. “Beyond Meat is one of the most dangerous shorts in this market.”

Reaching a ‘Tipping Point’

The meat industry is currently experiencing major issues due to the coronavirus pandemic.

Many processing plants are now shut due to significant outbreaks among workers. This has resulted in meat shortages on supermarket shelves, but a back-up of animals on farms. A number of farmers have been forced to dump milk, break eggs, and euthanize their own animals.

On Wednesday’s episode of “Mad Money,” founder of Beyond Meat Ethan Brown told Cramer: “We’ve reached the point where there’s so many livestock on the earth’s surface that we’re running into challenges with keeping that system working. That supply chain, as many people in the industry themselves have said, is under enormous pressure.”

“I think we are reaching a tipping point,” he added.

Cramer noted that Beyond Meat’s products effectively mimic the real taste and texture of meat. He said that he may even go vegan himself.

“I think there are people who are getting appalled by what’s happened at the meat packers,” he said on Wednesday’s “Squawk on the Street.” “I think these stories make you become not necessarily vegetarian but to think twice about beef. If you think twice about beef and then you try Beyond, you kind of realize it’s very, very similar.”

On Thursday’s show, he added: “I think the pandemic is saying start eating plant-based.”