Beyond Meat To Launch New Steak Alternative As It Focuses On Health

Beyond Meat will add a whole-muscle steak option as part of its plan to win over health-conscious customers.

CEO Ethan Brown said on Wednesday that the rollout will probably include a relationship with a restaurant chain known for serving healthier food. This differs from its previous plan, which was to work with fast-food chains like McDonald’s and Dunkin’ Donuts.

Beyond announced more than six months ago that it would turn things around by cutting costs, raising prices, and ending the meat product it made with PepsiCo. To get sales going again after a drop, the business has focused its marketing on the health benefits of a plant-based diet.

It has done this by working with groups like the American Cancer Society and college players to get deals with influential people. A big part of Beyond’s sales pitch has always been health, but the company used to stress climate change even more.

In the past few months, Brown has said that some problems in the plant-based meat industry are due to false information spread by the meat industry and cow farmers, such as doubts about how plant-based meat is processed.

Beyond already selling plant-based steak tips, this new product uses mycelium, the root-like part of a fungus, to make it feel like a filet. Brown thinks the steak option could be used instead of chicken to add energy to salads and burritos.

“A very small number of ingredients, a lot of protein, and almost no saturated fat have been the main goals,” he said.

As part of the plan, the company will also introduce new versions of Beyond Burger and Beyond Chicken in supermarket shops. The new goods have short lists of ingredients to try to win over people who used to think that plant-based meat was too prepared.

Beyond wouldn’t say when its newest steak or chicken options would be available.

Investors And Eaters Are Leaving

Beyond’s market value used to be more than $14 billion, which led to more investment in plant-based meat and many new rivals.

But now, the company’s market value is less than $400 million. This shows that investors are worried about the company’s health and the industry’s sales problems. In 2024, a third of the value of its stock was lost.

Beyond’s net sales in the second quarter were $93.2 million, which was 8.8% less than the same time last year and 37% less than the second quarter of 2021.

Beyond went public five years ago. Since then, more people have bought its plant-based meat at grocery stores and fast food chains like Dunkin’. Lockdowns during the COVID-19 pandemic made people cook at home more, which increased sales even more, but the boost did not last.

Buzzy relationships with big food chains like McDonald’s and Yum Brands didn’t lead to permanent menu items in the U.S., but Beyond has had more success in those chains’ European markets. Because it worked with PepsiCo on a single project, it made jerky, which is no longer made. This product hurt its profits for several quarters.

At the same time, the bigger group began to have trouble. People stopped wanting to try plant-based meat because they didn’t like the taste or were worried about how it was made.

According to the Plant Based Foods Association, sales of plant-based foods like milk, meat, egg, and butter substitutes only went up 1% from $8.1 billion to $8.1 billion last year. About a quarter of all store sales in this area come from milk alternatives. Plant-based meat comes in second.

As People’s Tastes Changed, Investors Lost Interest, Too

Kellogg considered selling or splitting off its plant-based business as part of a larger three-part company split. Ultimately, it decided to keep it as part of Kellanova, its food spinoff that Mars is buying. Since 2021, it has been said that Impossible Foods might consider going public.

However, the company’s CEO said earlier this year that the company could sell or go public in the next three years, which is a much longer time frame.

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