By the Editorial Board | May 12, 2023 at 10:51 a.m. EDT | The Washington Post
Plant-based-protein company Beyond Meat’s market capitalization plummeted from $14 billion after its 2019 initial public offering to less than $700 million after the company announced this week that it needs to raise up to $200 million in additional capital to make up for all the cash it is losing. Founder and chief executive Ethan Brown expressed optimism on a Wednesday earnings call that the business is “turning a corner” and will eventually “cross over the chasm from early adopters to mainstream consumers.”
But American retail consumers bought 8 percent less fake meat in 2022 than in 2021, according to the Good Food Institute, a nonprofit created to promote alternatives to animal products, and only 63 percent were repeat customers. The novelty has worn off, and people are no longer excited about trying highly processed foods that cost more and don’t taste as good as the meats they’re trying to imitate. Future innovators can learn from these five struggles:
The taste, texture and smell of fake meat are unappetizing. Taste is the top reason people who have tried meat alternatives give for not trying them again. Mintel, a market research firm, found in a survey that only 20 percent think plant-based meats are tasty, compared with 61 percent for animal-based meats. “Shamburgers” don’t smell good when cooked because of ingredients added for effect. For example, Beyond uses cryogenically frozen fat balls made from canola oil and refined coconut oil. Beet juice is supposed to give patties their bloody quality. Impossible, a competitor, includes a yeast called soy leghemoglobin. Many fast-food chains piloted fake meats but opted not to permanently place them on U.S. menus. (Continue to The Washington Post for the full article)
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