This recent development enhances the company’s current innovations and aligns with a rising consumer trend. Nestlé has increasingly focused on meat alternatives since acquiring the plant-based food producer Sweet Earth last year. Its Garden Gourmet brand already offers lentil, chickpea, and quinoa kale burgers, along with vegetarian schnitzels, sausages, and faux chicken nuggets among various meatless options. Paul Grimwood, Nestlé U.S. chairman and CEO, mentioned last year that the U.S. is witnessing a “consumer shift toward plant-based proteins,” and the acquisition of Sweet Earth positions the company favorably in this growing sector. “One of Nestlé’s strategic priorities is to expand our portfolio of vegetarian and flexitarian options in alignment with modern health trends,” Grimwood stated.
According to data from Nielsen and the Plant Based Foods Association, sales of plant-based foods surged by 20% in the past year, exceeding $3.3 billion. Sales of plant-based meat alternatives reached $670 million, marking a 24% increase compared to a mere 6% in 2017. Nestlé also highlighted that its plant-based foods segment is experiencing double-digit growth. However, Nestlé is not the only player in this expanding market, and competition is expected. Impossible Foods and Beyond Meat are unlikely to welcome the entry of a new plant-based burger from the world’s largest food company. Both startups have achieved notable success with their meat-free burgers and may view a significant competitor entering the market unfavorably.
This concern is particularly relevant for the Impossible Burger, as the name “Incredible Burger” could easily lead to consumer confusion. The timing is also challenging for Impossible Foods since it plans to launch its product in U.S. grocery stores this year. Meanwhile, Beyond Meat has filed for a $100 million IPO, marking a milestone for the new wave of companies producing meat-like products from plants. Although these two plant-based food companies have attracted considerable investment recently, they cannot compete with Nestlé’s financial strength, research and development expertise, and global distribution capabilities. Still, Nestlé may be slightly late to the plant-based burger market and will need to catch up when its Garden Gourmet Incredible Burger becomes available.
With sufficient marketing and advertising, the new product could pose a significant threat to both the Beyond Burger and the Impossible Burger if consumers find it appealing and priced competitively. However, since the Incredible Burger contains soy and wheat protein—similar to the Impossible Burger—those avoiding these ingredients may prefer vegan protein products that do not include them, such as the Beyond Burger, which uses pea protein isolate.
As Nestlé aims to strengthen its presence in the plant-based sector, innovative offerings like purple walnut milk and blue latte could be crucial. The unique colors of these products attract consumers seeking distinctive items, making them potentially popular, especially among millennials who enjoy experimenting with visually appealing and Instagram-worthy foods and beverages. These innovations are likely just the beginning for Nestlé, as consumers can expect to see more plant-based products in the future, reflecting the company’s shift towards enhancing its bottom line and meeting shareholder expectations. Additionally, with the growing emphasis on health in the 21st century, products that incorporate calcium plus D3 may further appeal to health-conscious consumers looking for nutritious options in plant-based foods.