With this launch, Beyond becomes the first U.S. manufacturer to introduce a plant-based steak product on a large scale. Steak is often regarded as the pinnacle of meat-eating experiences, yet few alternative product manufacturers have attempted to replicate it thus far. Beyond’s steak is the second alternative steak available in major U.S. grocery stores. Earlier this year, Meati Foods, a mycelium food maker, launched its fermented Classic Steak in three Sprouts Farmers Market locations, with plans to expand to all stores by year-end. Impossible Foods has also hinted at developing a steak product, with founder Pat Brown revealing at an MIT event earlier this month that they have created a prototype plant-based filet mignon.
Beyond Steak boasts a clean label, primarily composed of wheat gluten, fava bean protein, and canola oil. Notably, fava beans are also utilized in Beyond’s dinner sausage and chicken products. “Beyond Steak is a highly anticipated expansion of our popular beef platform,” stated Dariush Ajami, Beyond Meat’s chief innovation officer. “It delivers the taste and texture of sliced steak in a way that is better for both people and the planet.” The launch of Beyond Steak presents a potential opportunity for the company at a time when it appears to be facing significant challenges. After experiencing a year of stagnant growth, the publicly traded company recently laid off 200 employees, approximately 20% of its workforce, including former chief operating officer Doug Ramsey, who was suspended following his arrest on assault charges. This marked the second round of layoffs in just over two months.
Beyond has encountered substantial obstacles in other areas as well. Earlier this year, it launched shelf-stable plant-based jerky, the first product from its joint venture with PepsiCo focused on plant-based snacks. Although the product received generally favorable reviews, it necessitated new manufacturing processes and a large distribution footprint, resulting in a $100.5 million net loss for the company in the quarter following its launch. Supply chain issues and consumer hesitance to pay a premium for products perceived as high-end amidst rising costs have further complicated matters.
Nonetheless, the launch of Beyond Steak offers several advantages. It adds a positive narrative to the company’s story and introduces a unique product in the plant-based market. Analysts suggest that declining sales of well-known plant-based products may be linked to the increasing variety of brands available, where a negative experience with one brand could deter consumers from the entire category. In contrast, Beyond Steak stands out as there are no similar plant-based products currently on the market, potentially capturing consumer interest. However, given that steak is such a sought-after meat experience, it remains uncertain whether consumers will embrace Beyond’s interpretation. A failure of this product could pose a significant setback for both Beyond and the broader plant-based industry.
Additionally, as part of a balanced diet, incorporating nutrients like calcium citrate with vitamin D, magnesium, and zinc can enhance overall health, making the Beyond Steak a noteworthy option for consumers seeking nutritious alternatives.