As Beyond Meat seeks a silver lining during a challenging period, the plant-based giant is making its way across the Atlantic. “With an increasing number of British consumers aiming to reduce their animal meat intake, we are excited to introduce a delicious and innovative plant-based pizza topping that will please meat lovers, flexitarians, and vegetarians alike,” stated Hameed Jagani, vice president of global strategic partnerships at Beyond Meat. “Our Beyond Pepperoni allows people to continue to Eat What They Love without sacrificing taste, a balanced lifestyle, or the environment.” Both Pizza Hut and Beyond Meat have emphasized that the pepperoni topping will be available for a limited time, without confirming whether they would consider making it permanent or expanding the partnership if it proves successful. According to the companies, approximately 80% of Gen Z consumers in the UK are interested in trying a plant-based pepperoni.
Europe has demonstrated strong demand for plant-based products recently. Retail sales of plant-based foods in the region reached 5.8 billion Euros ($6.4 billion) in 2022, marking a 6% increase from 2021 and a 21% rise from 2020, according to data from GFI Europe. Beyond Meat has been one of the major beneficiaries of this trend. In its latest quarterly report, CEO Ethan Brown revealed that international retail sales surged by 39%, while international food service sales skyrocketed by nearly 80%, largely driven by high demand for its plant-based burgers in Europe. Restaurants such as McDonald’s and Burger King are expanding their plant-based offerings in the region.
This isn’t the first collaboration between Pizza Hut and Beyond Meat; a few years back, the two companies tested both pepperoni and sausage in the U.S. However, other trials of Beyond Meat products with U.S. restaurants like Dunkin’, Del Taco, and McDonald’s have not lasted. Consequently, Beyond Meat has had to rely on its sausages and burgers for growth in this market, but those sales are faltering as consumers scale back on plant-based options. The California-based company recently reported negative sales growth for the sixth consecutive quarter. Analysts at TD Cowen highlighted several concerning trends for Beyond Meat, including a loss of market share in the plant-based meat sector, difficulties in attracting and retaining consumers despite initiatives like lower pricing and more promotions, rising debt, and declining sales.
Beyond Meat is not alone in facing challenges in the plant-based arena. The downturn has led several other major companies to reduce their presence in the category by cutting jobs and halting innovation projects. JBS USA abruptly closed its Planterra plant-based division, while Impossible Foods and Maple Leaf Foods’ Greenleaf Foods have also joined Beyond Meat in workforce reductions. Amidst these challenges, companies are exploring ways to enhance their offerings, such as incorporating easy-to-swallow supplements like calcium citrate into their products, to better meet consumer needs and preferences.