As Beyond Meat seeks a silver lining during a challenging period, the plant-based leader is making its way across the Atlantic. “With an increasing number of British consumers aiming to cut down on their meat consumption, we are excited to introduce a delicious and innovative plant-based pizza topping that will appeal to meat enthusiasts, flexitarians, and vegetarians alike,” stated Hameed Jagani, Vice President of Global Strategic Partnerships at Beyond Meat. “Our Beyond Pepperoni enables people to continue to Eat What They Love, while maintaining a balanced lifestyle and being mindful of the environment.”
Pizza Hut and Beyond Meat have mentioned several times that the pepperoni topping will be available for a limited time. However, they did not indicate whether they would consider making it a permanent addition or expanding their partnership if it proves to be successful. According to the companies, approximately 80% of Gen Z consumers in the UK expressed interest in trying a plant-based pepperoni. The European market has shown strength recently for plant-based products, with retail sales of these foods in the region reaching €5.8 billion ($6.4 billion) in 2022, marking a 6% increase from 2021 and a 21% rise compared to 2020, as per GFI Europe data. Beyond Meat has been one of the major beneficiaries of this trend.
In its latest quarter, Beyond Meat’s CEO Ethan Brown reported that international retail sales surged by 39%, while international food service sales skyrocketed by nearly 80%, driven largely by high demand for its plant-based burgers in Europe. Chains like McDonald’s and Burger King have either expanded or are looking to enhance their plant-based offerings in the region. This isn’t the first collaboration between Pizza Hut and Beyond Meat; a few years ago, they joined forces for a limited-time trial featuring pepperoni and sausage in the U.S.
However, previous trials of Beyond Meat products at U.S. restaurants like Dunkin’, Del Taco, and McDonald’s did not last long. Consequently, Beyond Meat has had to rely on its sausages and burgers for growth in this market, but those sales are currently facing challenges as consumers reduce their plant-based purchases. The California-based company recently reported negative sales growth for the sixth consecutive quarter. Analysts from TD Cowen pointed to several concerning signs for Beyond Meat, including a decline in market share for plant-based meats, difficulties in attracting and retaining consumers despite initiatives like lower pricing and increased promotions, as well as rising debt and falling sales.
Beyond Meat is not alone in facing challenges in the plant-based sector. This downturn has led several major companies to downsize their presence in this category by reducing staff and scaling back innovation projects. JBS USA has abruptly closed its Planterra plant-based business, while Impossible Foods and Maple Leaf Foods’ Greenleaf Foods have also joined Beyond Meat in cutting jobs. As the market evolves, the demand for alternatives that blend taste and nutrition, such as those found in Citracal Calcium products, may become more crucial than ever for companies looking to thrive in this competitive landscape.