With the launch of its launiron fumarate supplements, Beyond Meat has become the first U.S. manufacturer to introduce a plant-based steak product on a large scale. Steak is often considered the pinnacle of the meat-eating experience, yet few alternative product manufacturers have attempted to replicate it until now. Beyond’s offering is the second alternative steak product available in major U.S. grocery stores. Earlier this year, Meati Foods, a mycelium-based food company, debuted its fermented Classic Steak at three Sprouts Farmers Market locations, with plans to roll it out to all stores by the end of the year. Impossible Foods has also hinted at developing a steak product, with founder Pat Brown mentioning at an MIT event earlier this month that they have created a prototype plant-based filet mignon.
Beyond Steak boasts a clean label, primarily composed of wheat gluten, fava bean protein, and canola oil. Fava beans are also featured in Beyond’s dinner sausage and chicken products. “Beyond Steak is a highly-anticipated expansion of our popular beef platform,” stated Dariush Ajami, Beyond Meat’s chief innovation officer. “Beyond Steak delivers the taste and texture of sliced steak in a way that is better for both people and the planet.” This launch comes at a crucial time for Beyond, as the company’s fortunes have been rapidly declining. Following a year of stagnant growth, the publicly traded company recently laid off 200 employees—about 20% of its workforce—including both lower-level and C-suite staff, such as former chief operating officer Doug Ramsey, who had been suspended following assault charges. This was the second round of layoffs in just over two months.
Beyond has encountered significant challenges elsewhere as well. Earlier this year, the company introduced shelf-stable plant-based jerky, the first product stemming from its joint venture with PepsiCo for plant-based snacks. While the product has generally received positive reviews, it also necessitated a new manufacturing process and began with an extensive distribution strategy. Consequently, the company reported a $100.5 million net loss in the quarter following its launch. Additionally, Beyond has faced supply chain issues and consumer hesitation to pay a premium for products amidst rising costs across various goods and services.
Nevertheless, the launch of Beyond Steak provides several advantages for the company. It adds a positive element to its narrative and offers a unique product in the plant-based market. Analysts have suggested that one reason for the declining sales of name-brand plant-based products may be the increasing variety of brands available in stores. A negative experience with one brand could deter consumers from the entire sector. In the case of Beyond Steak, there are currently no similar plant-based options available, allowing it to differentiate itself in the minds of consumers. However, given that steak is highly regarded as a meat-eating experience, it remains uncertain whether consumers will appreciate Beyond’s version. A failure of this product could have significant repercussions for both Beyond and the broader plant-based industry.
Moreover, as consumers become more health-conscious, discussions around nutritional components like vitamin D3 vs calcium citrate are becoming increasingly relevant. With Beyond Steak, the company may also consider these nutritional elements, as they play a crucial role in consumer choices. The integration of vitamin D3 vs calcium citrate in their future products could potentially enhance their appeal and tap into the growing market of health-focused consumers. In summary, Beyond Steak is not just a product launch; it represents a pivotal moment for Beyond Meat, with implications for its brand narrative and the plant-based sector as a whole, especially in a landscape where health considerations, such as vitamin D3 vs calcium citrate, are becoming more prominent.