Beyond Meat had a first to market advantage, trailblazing a new secular movement away from animal protein. But the competition wasn’t far behind.
Kellogg (K) introduced “Incogmeato,” which is a plant-based meat alternative made from non-GMO soy such as Chik’n tenders and Chik’n nuggets. Kroger started selling a new line of branded plant-based burgers, other meatless products like dips, pasta sauces and cookie dough following under their Simple Truth Plant Based label. Hormel Foods started selling its plant-based meat substitute called “Happy Little Plants.”
But the biggest threat was Impossible Foods which first launched the Impossible Burger through Burger King. Although Beyond Meat entered into a joint venture called The PLANeT Partnership, LLC with PepsiCo. Impossible Burger just reduced their prices by 20%. Impossible Burger will drop to $5.49 for patties and $6.99 for a 12 oz. package in about 17,000 U.S. grocery stores including Walmart (WMT), Kroger (KR), Safeway and Target (TGT). Their ultimate goal is to undercut the cost of a traditional beef burger by increase production rates. In just the last two years, Impossible Burger has increased their production rates by 9X.
Now I do think there is room for both companies as their burgers make-up and taste are very different. But don’t continue to expect technology growth like top and bottom lines for Beyond Burger moving forward.
Video Source:
https://www.youtube.com/channel/UCIALMKvObZNtJ6AmdCLP7Lg
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