Beyond Meat is going red – in more ways than one

Beyond Meat plans to launch a whole-muscle steak alternative that mimics the taste and texture of a filet, according to a recent announcement.

The company already sells plant-based steak tips, but the new product mimics the texture of a filet with mycelium, the rootlike part of fungi, CNBC reports. Beyond Meat sees it as a protein substitute for chicken, topping salads, and stuffing burritos.

The steaks are high

Beyond Meat is in need of a jolt, as its sales have been like a fish out of water – floundering.

• In August, the company reported its ninth straight quarter of year-over-year revenue declines. Sales for the quarter were 37% lower than the same period in 2021.
• Investors aren’t too stoked about this drop. Once valued at $14+ billion, Beyond Meat’s market cap now sits at ~$400 million. Its stock has lost a third of its value so far this year.

However – the company is currently in the midst of executing a previously announced turnaround strategy it hopes will mimic an angry parent and turn this car around.

The main tenet of this turnaround plan is, similar to a high school football coach during the school day, focused on health. In a bid to appeal more to consumers who believe its products are too processed, Beyond Meat has started trimming ingredient lists, highlighting the health benefits of a plant-based diet in marketing, and partnering with organizations such as the American Cancer Society and college athlete influencers.

👀 Looking ahead… The company’s new plant-based steak product, which doesn’t yet have a rollout date, will probably involve a partnership with a “healthier” restaurant chain, CEO Ethan Brown told CNBC. This marks a departure from Beyond Meat’s earlier (and largely unsuccessful) partnerships with health-food nuts Pepsi, McDonald’s, and Dunkin’.

The product’s rollout also comes amid a stagnant plant-based market. Sales of plant-based foods, which includes milk, meat, egg, and butter alternatives, rose just 1% to $8.1 billion last year, according to data from the Plant Based Foods Association.