Beyond meat is rolling out a new version of its plant-based burger in grocery stores this spring, betting that an even healthier version of its burgers will lure consumers back.
Wednesday’s unveiling comes at a pivotal time for Beyond as a company. The once-popular plant-based meat category has lost consumer interest. According to Circana data, retail sales of meat alternatives are down 33.6% compared to last year (as of January 28).
Beyond’s retail and restaurant sales have plummeted as a result. In the third quarter, sales were down 29% compared to the previous two years. The company’s market value has also fallen, falling to $463 million from a high of $14.14 billion four and a half years ago. The stock has fallen 60% over the past year.
The embattled company has consistently claimed that its meat substitutes are healthier than real meat substitutes. But Beyond touts that the latest version of its beef is lower in sodium and saturated fat than ever before. According to Beyond CEO Ethan Brown, the reformulation is the biggest improvement to the recipe since the burger was introduced in 2016.
“I think Beyond IV represents a leap forward, not just a small step,” Brown told CNBC.
The latest version of the Beyond Burger, made with avocado oil and 20% less sodium.
Source: Beyond Meat
The new burger uses avocado oil and reduces its saturated fat content by 60% to two grams. In addition, Beyond has reduced the sodium content in plant-based meat by 20%. The ingredient list is shorter, but includes other new ingredients such as red lentils and fava bean protein.
“In recent years there has been a combination of campaigns and other attempts to poison the well when it comes to the health benefits of plant-based meat,” Brown said. “In the spirit of the iron sharpening iron, we tried to create products that are now completely unassailable in terms of health.”
Critics have attacked plant-based meat from Beyond and its competitors as processed and full of chemicals. Back in November, Brown said on the company’s conference call that supporters of the campaign to denigrate plant-based meat as unhealthy were likely members of the meat and pharmaceutical industries.
Beyond said it worked with Stanford University School of Medicine and registered dietitians, among others, to inform the development of the new product.
Beyond is expected to report its fourth-quarter results after the market closes on February 27.
—CNBC’s Kate Rogers contributed to this story.
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2024-02-21 21:28:19
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