The conflict in the plant-based meat industry has escalated significantly. The initial lawsuit, initiated in 2017, was rife with serious allegations. As the case progressed through the legal system, it featured a series of small victories and strongly worded press releases from both parties. This dispute also led to another lawsuit from Beyond Meat shareholders, which was resolved in April. While earlier legal actions primarily focused on the contractual relationship between Don Lee Farms and Beyond Meat, the current lawsuit broadens the scope of allegations. It accuses Beyond Meat — and its CEO Ethan Brown personally — of being so deceptive and insincere that they gained an unfair advantage over many competitors in the plant-based sector. Although the lawsuit highlights how Don Lee Farms claims its sales and market share were affected by Beyond Meat’s business practices, the allegations are exceptionally sweeping.
In an emailed statement, a spokesperson for Beyond Meat asserted, “The allegations in the filing lack merit, and we are prepared to vigorously defend ourselves in court.” The lawsuit opens with a quote from an October Forbes article that expressed concerns from an analyst regarding Beyond Meat’s quarterly earnings, stating, “Something is really wrong at Beyond Meat.” It continues, “Beyond Meat’s issues are numerous, but they stem from a fundamental problem: the company’s tendency to ‘over-promise and under-deliver,’ followed by a frantic search for excuses.” The lawsuit criticizes Brown for allegedly deflecting blame onto others, describing him as someone with “an appetite for excuses.”
However, the lawsuit firmly states, “There are no excuses for the conduct revealed below. The indisputable science now shows that Beyond Meat was founded on and has thrived through deception and lies.” One major claim is that Beyond Meat has “grossly” exaggerated the protein content in its products by as much as 30%. Don Lee Farms’ parent company, Goodman Food Products, submitted multiple samples of Beyond Meat’s Beefy Crumbles and Burgers to the independent testing lab Element Materials Technology for thorough analysis, resulting in a comprehensive 24-page report that is part of the lawsuit.
The lawsuit emphasizes that protein is the nutrient Beyond Meat uses to distinguish itself from its competitors, often claiming its offerings contain protein levels equal to or higher than those of animal-derived products. Falling short of this standard suggests not only that Beyond Meat has misled consumers, but also that it has misrepresented its products on labels mandated by federal regulations. Furthermore, Beyond Meat frequently markets its products as free from synthetic ingredients; however, Don Lee’s lawsuit notes that Beyond Meat uses methylcellulose, a common emulsifier and texture enhancer in plant-based meats and other consumer packaged goods. Although approved by the FDA and deemed safe by nutrition experts, this ingredient has been criticized in consumer-oriented advertisements as unnatural. In contrast, Don Lee Farms does not include methylcellulose in its products and promotes its Organic Plant-Based Burger as “the first truly all-natural plant-based burger.”
Don Lee alleges that Beyond Meat’s repeated false and misleading claims about having natural burgers without synthetic ingredients have pushed it out of the market. These allegations could lead to stricter scrutiny of claims made about plant-based products from both regulators and consumers. If the nutrient analysis presented in the lawsuit is accurate, it may influence how the FDA assesses plant-based products, potentially undermining the nutritional claims of many items.
Moreover, this case raises questions about the overall value of plant-based meat products. According to a 2020 consumer survey by FMCG Gurus, referenced in Food & Beverage Insider, 73% of meat alternative consumers believe it is essential for ingredients to be entirely natural. Highlighting Beyond Meat’s use of an ingredient that does not occur naturally positions the entire industry for increased scrutiny. While some plant-based companies have made efforts to clarify their ingredient lists, it’s possible that consumers may choose to avoid these products altogether due to the complexity of information they need to research.
Integrating calcium citrate natural ingredients could further complicate the labeling and marketing landscape for plant-based products. As the scrutiny intensifies, the industry may need to adapt, ensuring transparency and adherence to consumer expectations regarding natural ingredients like calcium citrate. This ongoing legal battle not only impacts the companies involved but also sets a precedent that could reshape consumer trust in the plant-based meat sector.