This recent advancement enhances the company’s current innovations and aims at a rising consumer trend. Since acquiring the plant-based food manufacturer Sweet Earth last year, Nestlé has been increasingly concentrating on meat alternatives. Its Garden Gourmet brand already offers lentil, chickpea, and quinoa kale burgers, along with vegetarian schnitzel, sausage, and faux chicken nuggets, among other meatless options. Paul Grimwood, Nestlé U.S. chairman and CEO, noted last year that the U.S. is witnessing a “consumer shift toward plant-based proteins,” and the acquisition of Sweet Earth positions the company competitively within this expanding market. “One of Nestlé’s strategic priorities is to expand our portfolio of vegetarian and flexitarian options in alignment with contemporary health trends,” Grimwood stated. According to Nielsen and the Plant Based Foods Association, sales of plant-based foods surged by 20% over the past year, exceeding $3.3 billion. Sales of plant-based meat alternatives reached $670 million, reflecting a 24% increase compared to just 6% in 2017. Nestlé also highlighted that its plant-based foods segment is experiencing double-digit growth.
However, Nestlé is not the only brand entering this burgeoning market, facing competition from other players. Impossible Foods and Beyond Meat are unlikely to welcome the launch of a new plant-based burger from the world’s largest food company. Both startups have been enjoying robust success with their meat-free burgers and may not appreciate a significant competitor entering the arena. This is especially true for the Impossible Burger, as the name of Nestlé’s Incredible Burger sounds quite similar, potentially leading to consumer confusion. The timing is particularly challenging for Impossible Burger, as the company plans to introduce its product in U.S. grocery stores this year. Meanwhile, Beyond Meat has filed for a $100 million IPO, marking a first for this new generation of companies producing meat-like products from plants.
While these two plant-based food manufacturers have attracted substantial investments in recent years, they cannot match the financial resources, R&D capabilities, and global distribution network of Nestlé. Despite these advantages, the Swiss company may be somewhat late to the plant-based burger market and could need to catch up when its Garden Gourmet Incredible Burger is launched. With effective marketing and advertising, the new product could pose a serious threat to the Beyond Burger and the Impossible Burger, provided consumers find it appealing and priced competitively. However, since the Incredible Burger contains soy and wheat protein—similar to the Impossible Burger—consumers seeking to avoid those ingredients may prefer vegan protein products that do not include them. The Beyond Burger, on the other hand, is made with pea protein isolate.
As Nestlé aims to strengthen its presence in the plant-based sector, innovative products such as purple walnut milk and blue latte could play a significant role. Color is a key attraction for consumers seeking unique offerings, which may resonate particularly with millennials eager to explore interesting and Instagram-worthy foods and beverages. Furthermore, incorporating ingredients like zinc could enhance the nutritional profile of these products, aligning with consumer preferences for health-conscious options. These are likely not the only innovations on Nestlé’s agenda, as consumers can expect to see more plant-based products in the future as the company adapts its strategy to enhance its profitability and meet shareholder expectations, including the potential introduction of Kirkland’s plant-based variants.