Beyond Meat Launching New Meatless Product To Combat Declining Sales

Beyond Meat suffered a disappointing $93.2 million in net sales, down nearly 9% in the last quarter year over year. However, a revamp of its product line and the introduction of a new plant-based meat item could reverse the downward trend.

While a release date has not been announced, a new steak alternative is expected to launch soon in partnership with an unnamed, health-focused restaurant chain. The new product will use fungi to imitate the look and feel of a filet.

Touting the health benefits of plant-based meat, the Beyond Burger and Beyond Chicken products will also be reformulated with fewer ingredients. Earlier this year, Beyond Meat removed the canola and coconut oils previously used in its products and replaced them with avocado oil, which reduced the saturated fat by 60%.

Past partnerships with McDonald’s and Yum! Brands led to some new plant-based menu items, like the McPlant and Taco Bell’s vegan carne asada steak, but they did not last. Alongside Pepsi, Beyond Meat introduced a jerky product, but it never resonated with consumers and was eventually discontinued.

When Beyond Meat went public in 2019, enthusiastic investors quickly scooped up the stock as health-conscious consumers passionately bought its meatless products at grocery stores and restaurants. At one time worth $14 billion, the company’s market cap has since dropped to just under $400 million.

Affecting not just Beyond Meat, consumers are losing interest in meat-free products. According to data from the Good Food Institute, industry-wide sales of plant-based meat fell 12% in 2023. Price increases and concerns related to the over-processing of meatless products have consumers shying away.

Despite waning consumer demand and prior product mishaps, Beyond Meat CEO Ethan Brown said the company will continue to innovate and strive to be a significant contender in the meat-alternative food category. The company executive remains optimistic about the future of both Beyond Meat and the industry as a whole.

“We’ve been now public for over five years, and there was this tremendous growth in the category and then a contraction, and Beyond Meat continues to lead,” Brown said in an interview with Yahoo! Finance. “And we think we’re going to lead the next phase of growth for the category and for Beyond Meat.”