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Dive Briefing:
- Beyond Meat is launching a beef substitute that mimics the taste and texture of sirloin to appeal to health-conscious consumers, CEO Ethan Brown told CNBC.
- The CEO said the launch could begin with partnerships with “healthier restaurant chains,” in contrast to the company's previous strategy of partnering with establishments like McDonald's and Dunkin Donuts.
- Since announcing a new marketing strategy earlier this year, Beyond has sought to reduce its ingredient mix and focus its messaging on the benefits of a plant-based diet in an effort to win over consumers who previously viewed its products as overly processed.
Dive Insight:
Beyond Meat announced a strategic shift earlier this year in response to sluggish sales.
The plan included raising prices, discontinuing jerky products, renewing marketing efforts, and redesigning product recipes. For example, in a revamped burger launched ahead of the anniversary, Beyond replaced coconut and canola oils with avocado oil and included plant-based proteins such as fava beans.
In August, Beyond reported its ninth consecutive quarterly performance. As the plant-based meat industry struggles, annual sales are declining. The company has also been fighting the myth that its products are unhealthy. Its sales fell 14% in the April-June period as retail and foodservice demand in the U.S. and international markets weakened.
In July, the company launched its latest product improvement, “Sun Sausage.” This is the first product from the plant-based pioneer that doesn’t mimic beef, pork or poultry. The company created the product with its own proteins that can be incorporated into other foods.
“The focus here is very few ingredients, very high protein, very low saturated fat,” Brown told CNBC.
The company declined to comment on details about when its latest steak product might be launched.
