Beyond Meat takes place on May 30, 2024 in El Segundo, California.
Christina House | Los Angeles Times | Getty Images
beyond meat will launch a whole-muscle steak alternative as part of its focus on winning over health-conscious consumers.
Chief Executive Ethan Brown said Wednesday that the rollout could include partnerships with restaurant chains known for serving healthy food, a departure from its previous strategy of partnering with fast-food chains like Dunkin’ and Dunkin’. McDonald’s.
More than six months ago, Beyond Announcement of turnaround strategy These include cutting costs, raising prices and stopping passing Pepsi. In an effort to revive slumping sales, the company’s marketing has focused on highlighting the health benefits of a plant-based diet through partnerships with organizations such as the American Cancer Society and influencer deals with college athletes. While wellness has always been part of Beyond’s pitch to consumers, the company has also taken climate change more seriously in the past.
Brown has blamed some of the plant-based meat industry’s woes in recent months on misinformation from the meat industry and cattle farmers, such as skepticism about plant-based meat processing.
Beyond already sells plant-based steak tips, but the new product mimics the texture of filet mignon with mycelium, the root-like part of the fungus. Brown envisions steak alternatives as a replacement for chicken, as a topping in salads and burritos, and as a source of protein.
“The key is very low ingredient count, very high protein content, very low saturated fat content,” he said.
The company also introduced reformulated versions of its Beyond Burger and Beyond Chicken to grocery stores. The new product has a short ingredient list in hopes of winning over customers who previously viewed plant-based meat as overly processed.
Beyond declined to reveal any details about the timing of the release.
losing diners and investors
Beyond’s market value once topped $14 billion, spurring broader investment in plant-based meat and spawning a slew of competitors.
But today, the company’s market value is below $400 million, reflecting investor concerns about the health of the business and struggling industry sales. By 2024, its shares had lost a third of their value.
Beyond’s net sales in the second quarter were US$93.2 million, a decrease of 8.8% from the same period last year and a decrease of 37% from the second quarter of 2021.
After Beyond went public five years ago, its stock price soared as more consumers purchased its plant-based meats in grocery stores and fast-food restaurants like Dunkin’. The Covid-19 pandemic further boosted sales as lockdowns encouraged people to cook more at home, but the boost did not last.
Established good cooperative relationships with catering giants such as McDonald’s Yum Brands While Beyond has had more success in the chain’s European markets, it hasn’t brought a permanent menu item to the U.S. Its joint venture with PepsiCo launched a single product, now-discontinued jerky, which hurt its profit margins for several quarters.
Meanwhile, broader categories are starting to struggle. Consumers have lost interest in trying plant-based meat, often complaining about its taste or concerns about its processing.
Sales of plant-based foods, which include milk, meat, egg and cream alternatives, grew just 1% last year to $8.1 billion, according to the Plant-Based Foods Association. The milk alternatives segment accounts for approximately a quarter of total retail sales in the category, followed by plant-based meats.
As consumer tastes changed, investors lost interest.
Kellogg had considered spinning off or selling its plant-based business, splitting the company into three broader parts, but ultimately chose to keep it as KelanovaMars is acquiring its snack derivatives. Impossible Foods has been rumored to be considering an IPO since 2021, but the company’s CEO said earlier this year that it could sell or go public within the next three years (a longer time frame).
However, Brown told CNBC that Beyond has no plans to sell its plans.
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