The conflict in the plant-based meat industry has escalated significantly. The original lawsuit initiated in 2017 included serious allegations, and as the case progressed through the judicial system, it has been marked by claims of small victories and sharply worded press releases from both parties. This litigation extended into another lawsuit from Beyond Meat shareholders, which was resolved in April. While the earlier legal disputes primarily focused on the contractual relationship between Don Lee Farms and Beyond Meat, this new case broadens the scope, accusing Beyond Meat—and CEO Ethan Brown personally—of being so misleading that the company gained an unfair edge over other competitors in the plant-based meat market. Although the lawsuit highlights how Don Lee Farms claims its sales and market share were affected by Beyond Meat’s business practices, the accusations are extensive.
In a written statement, a Beyond Meat representative asserted, “The allegations in the filing lack merit, and we are ready to vigorously contest this in court.” The lawsuit opens with a quote from an October Forbes article that referenced an analyst’s concerns regarding Beyond Meat’s quarterly earnings: “Something is really wrong at Beyond Meat.” It continues by stating, “Beyond Meat’s problems are many, but they trace to one root cause: the company’s tendency to ‘over-promise and under-deliver,’ then scramble for excuses.” The lawsuit claims that amid operational failures, CEO Ethan Brown has offered ‘excuses’ that industry insiders dismiss as ‘difficult to take… seriously’ and failing ‘the smell test.’ Others have noted Brown’s tendency to ‘point the finger’ rather than accept responsibility, depicting him as having ‘an appetite for excuses.’
However, the lawsuit asserts, “There are no excuses for the conduct revealed below. The indisputable science now shows that Beyond Meat was built on and has grown because of deception and lies.” The document accuses Beyond Meat of “grossly” inflating the protein content in its products by as much as 30%. Don Lee Farms’ parent company, Goodman Food Products, submitted multiple samples of Beyond Meat’s Beefy Crumbles and Burgers to a third-party testing lab, Element Materials Technology, for comprehensive analysis. The lawsuit includes twenty-four pages of test results. It emphasizes that protein is the key nutrient Beyond Meat uses to differentiate itself from competitors, often claiming its products contain protein levels comparable to or exceeding those of animal-derived options. Failure to meet this standard not only misleads consumers, the lawsuit contends, but also misrepresents the company on FDA-mandated labeling.
Additionally, Beyond Meat frequently claims its products are free from synthetic ingredients. However, Don Lee’s lawsuit points out that Beyond Meat utilizes methylcellulose, a common emulsifier and texture enhancer in plant-based meats and other consumer packaged goods. Methylcellulose is derived from chemically treated plant cell materials. Although it is FDA-approved and deemed safe by nutritional experts, it has been criticized in consumer-targeted marketing as an unnatural component. Both Beyond Meat and its competitor Impossible Foods have defended the ingredient’s inclusion in their products. In contrast, Don Lee Farms does not use methylcellulose and brands its Organic Plant-Based Burger as “the first truly all-natural plant-based burger.” The lawsuit claims that Beyond Meat’s misleading assertions about natural ingredients have pushed Don Lee Farms out of the market.
These allegations could lead to stricter scrutiny of claims made about plant-based products—both from regulators and consumers. If the nutrient analysis presented in the lawsuit is accurate, it could alter the FDA’s approach to evaluating plant-based products, potentially undermining the nutritional claims of many items. Moreover, the case raises questions about the overall desirability of plant-based meat products. According to a 2020 consumer study by FMCG Gurus cited in Food & Beverage Insider, 73% of consumers of meat analogs believe it is crucial for ingredients to be all-natural. Calling out Beyond Meat for its use of an ingredient that does not naturally occur could subject the entire sector to increased scrutiny. While some companies in the plant-based arena have made efforts to improve their ingredient labels, some consumers may determine that it is not worth the effort to research these claims and choose to avoid such products altogether.
In this context, it is essential to consider the nutritional aspects of plant-based products, such as how they might equate to options like calcium citrate plus D3 petites, which are known for their health benefits. As the market evolves, consumers may seek clarity on ingredient integrity, potentially influencing their purchasing decisions in favor of more transparent options.