While the plant-based meat market continues to expand and is expected to grow at a CAGR of 19.30% by 2030, Beyond (BYND) – Get Free Report specifically started out the year on a massive downturn.
The alternative meat company started out of Los Angeles in 2009 and quickly became a well-known name after a number of partnerships with major food players like Denny’s (DENN) – Get Free Report, McDonald’s Canada (MCD) – Get Free Report, and Yum! Brands’ (YUM) – Get Free Report KFC.
Last May, reality television star and socialite Kim Kardashian became the face of Beyond’s new campaign and shared her favorite plant-based meat recipes to over 313 million of her Instagram followers.
But amid an oversaturation of different plant-based options and the entry of many newer companies making similar products on the market, Beyond has struggled to maintain its former space as a leader. Shares of the company are down nearly 80% since January 2022.
Steak, Stocks and How One Affects the Other
A move that sent Beyond stock out of the red was when Costco (COST) – Get Free Report announced that it was adding Beyond’s plant-based steak to its shelves at select Arizona, Nevada, New Mexico, Colorado and Southern California locations. By Jan. 4, Beyond stock was up 4.2% to $12.90 despite being at $11.34 on Dec. 29.
Modeled not after a full bone-in cut but as steak tips that can be used to add protein to a sandwich or stir-fry, Plant-Based Beyond Steak is made from a combination of gluten and fava bean protein with the texture of steak pieces. The product, which comes in a 10-ounce package and sells for approximately $6.98, was already available at Walmart (WMT) – Get Free Report and Kroger (KR) – Get Free Report stores across the country.
“Beyond Steak is a highly-anticipated expansion of our popular beef platform and we’re proud to introduce this innovative product to consumers nationwide,” Beyond Meat’s Chief Innovation Officer Dariush Ajami said in a statement at the time of the product’s release in October.
But while big-box chains such as Walmart have been working to carve out a footprint in the alternative meat space, the addition is a bigger deal for Costco. The membership-only chain is a major food chain (rather than general department store with mostly prepackaged options) and is a favorite among many carnivores for its affordable fresh meat counter.
Beyond Meat
Plant-Based Steaks Can Elicit a Strong Customer Response
“Costco members across [these states] can now enjoy the flavorful, delicious bite of seared steak tips with the added health and environmental benefits of plant-based meat,” a company representative said in a statement sent to TheStreet.
Even the mere addition of plant-based items does not always go over well with customers who see eating meat as a part of their identity. When Southern country chain Cracker Barrel (CBRL) – Get Free Report announced it was testing a plant-based sausage made by Beyond competitor Impossible Foods, its Facebook (META) – Get Free Report page exploded with outraged comments about how a “once great Tennessee company” had “caved to the libs” and gone “woke.”
But as the commitment from Costco and stock gains that followed its adding Beyond to its product selection shows, the appetite for substitute and alternative meat as one among many other options is clearly there.
While it is not immediately clear which companies will remain or become front-runners in the years to come, the plant-based market overall is expected to be worth as much as $24.8 billion globally by 2030.
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