This week in the United
States we celebrate Independence Day and millions of Americans will be staying
home grilling outside on a BBQ. The
question is, will this year mark the first major decline in natural protein
sales including beef, chicken, and pork? Steven Johnson, Grocerant Guru® at
Tacoma, WA based Foodservice Solutions®
thinks that this year will be the year that sampling, trial, and a foothold in
the minds-eye of the consumers will begin to sprout.
Millennials insatiable
appetite for food discovery has already crated a platform driving sales of
‘fake meat’ that shows no sighs of slowing down. But after trial then what? It looks to our Grocerant Guru® that
after the new protein substitutes reach scale they will be able to not only
tout the ‘halo’ of better-for-you , better for the environment but better price
and that will ensure a sustainable future for many of the new companies selling
better for you meat replacements.
Recently,
Joanna Fantozzi wrote about five companies in that space that
are ‘on fire’ here is some of what she said:
“Restaurant
sales of meat-alternative products jumped 268% from 2018 to 2019, according to datafrom group purchasing
organization, the Dining Alliance.
Beyond
Meat Inc. and Impossible Foods Inc. have garnered the lion’s share of the
growing segment, but an increasing number of other companies are providing
alternatives to the alternatives.
Beyond
Meat, founded in 2009 in Los Angeles, announced its initial public offering in
May, valued at $25 per share, and it quickly shot past $171. Impossible Foods,
founded in 2011 and based in Redwood City, Calif., got its “bleeding”
Impossible Burger onto the menu at multiple major quick-service chains this year, including Burger King and Red Robin Gourmet Burgers Inc.
But
despite the stronghold that those two meatless protein startups have on the
fledgling meat-alternatives industry, reported product shortages allow room for
competitors to gain a foothold.
Reports
of Impossible Burger shortages hitting major
partners, including Red Robin and White Castle, have surfaced. Bloomberg made calls
earlier this month to
a dozen Red Robin and White Castle units and found that only two locations had
the popular meatless patties in stock, and the restaurants had no idea when
they would get them back in stock.
Beyond
Burger experienced similar shortages in 2017 and 2018, when the company’s
supply could not keep up with increasing demand.
Impossible
Foods has addressed these shortages, telling Nation’s Restaurant News that
“like many successful startups, we are facing short-term ramp-up challenges
resulting from demand greatly outstripping supply.” The company said it is in
the midst of an aggressive hiring spree to keep up with demand and “plans to
install a second production line in July that should double current capacity,”
anticipating “that the second line will be fully staffed and ramped up in the
fall.”
In
addition to supply issues, both companies have seen rising competition.
Springdale, Ark.-based Tyson Foods Inc., which previously had sold its stake in
Beyond Meat, said it would launch its own line of meat-alternative products.
Here’s
a look at some of the up-and-coming meat-alternative competitors:
After
suggesting that it would enter the meat alternatives industry for months, Tyson
Foods Inc. announced on June 13 that the company would soon be launching a new
line of meat-free and blended protein products called Raised & Rooted.
The
initial product portfolio will include plant-based nuggets made from blend of
pea protein powder and other plant ingredients. The blended burgers made with a
combination of plant-based ingredients and Angus beef. Additionally, the
company’s Aidells Whole Blends brand will be launching a line of sausage and
meatballs, made with chicken and plant-based ingredients.
“Today’s
consumers are seeking more protein options so we’re creating new products for
the growing number of people open to flexible diets that include both meat and
plant-based protein,” said Noel White, Tyson Foods president and CEO, in a
statement. “For us, this is about ‘and’ – not ‘or.’ We remain firmly committed
to our growing traditional meat business and expect to be a market leader in
alternative protein, which is experiencing double-digit growth and could
someday be a billion-dollar business for our company.”
Tyson
will be launching the vegan nuggets to retail outlets nationwide this summer,
with the blended burgers to join the lineup in the fall. No details were
available concerning where the products would be available.
Tyson
declined to comment further on the launch of the new product line.
Through
Tyson Ventures, the company’s venture capital fund, Tyson Foods said it also
continues to invest in start-up companies involved in alternative proteins,
including mushroom-based protein producer MycoTechnology and cell-based meat
producers Memphis Meats and Future Meat Technologies.
Nestlé
USA is another major food corporation diving into the plant-based proteins. In
2017, Nestlé acquired Sweet Earth, a Moss Landing, Calif.-based vegan foods
manufacturer. Sweet Earth this year announced the launch of its new vegan
burger product, Awesome Burger, and its ground beef component, Awesome Grounds,
that will be headed to retailers in the fall.
Sweet
Earth currently offers both organic and conventional versions of the Awesome
Burger, and both are certified as containing no non-genetically modified
organisms. (Advocates have criticized Impossible Foods for using genetically
modified soy in the Impossible Burger).
Nestlé
told NRN that the company plans to distribute the Awesome Burger and Awesome
Grounds to supermarkets, restaurants and universities, though the company
declined to comment on specific partnerships.
“Both
the organic and conventional versions of the Awesome Burger are higher in
protein and fiber than most other plant-based burgers — our conventional burger
has 28 grams of protein and 6 grams of fiber,” Kelly Swette, CEO and co-founder
of Sweet Earth told NRN. “This is because we use U.S.- sourced yellow
pea protein, [which is] more protein-dense than green pea protein.”
Sweet
Earth was not the only plant-based protein startup acquired by a major
manufacturer. Sunset Beach, Calif.-based vegan foods brand Before the Butcher
was acquired earlier in June by Gregg and Jeff Hamann, the owners of ground
beef producer Jensen Meat Co.
The
company also announced the upcoming national retail distribution of its
“chicken,” “turkey,” “beef,” and breakfast “sausage” plant-based burger patties
this summer to 3,000 stores, including three of the largest grocery retailers
in the country. Following the distribution of their “B4Burger” portfolio,
Before the Butcher will launch the rest of its Uncut vegan protein products,
including ground “beef,” vegan chorizo and Italian sausage
products.
Before
the Butcher’s founder Danny O’Malley worked for Beyond Meat before starting his
own vegan protein company in 2017, just one year after leaving Beyond Meat.
“I embraced
the vision that the founder of Beyond Meat saw as well and I realized that
there were opportunities far beyond what they were doing,” O’Malley told NRN.
“They have amazing stuff going on, but the product line was limited. … We have
a full family of plant-based products that supersedes our competitors, and we
believe our nutrition is superior: our Uncut burger has 150 mg of sodium, while
our competitors are close to 400 mg of sodium, and that was a strategic
decision on our part.”
The
B4Burger is made from non-GMO preserved soy protein, though many of their
competitors have chosen to go with yellow or green pea proteins. O’Malley said
that the decision to use soy was motivated by the “texture and bite” of the
product that he believes more closely resembles ground beef.
O’Malley
said he is not worried about competition and does not believe the market will
become oversaturated.
“All
of us [meat-alternatives producers] at our greatest capacity can’t even meet
the demands of the market right now, so there is need for all of us,” O’Malley
said. “We are all working toward the same goal. [Beyond and Impossible] have
established this strong foothold but we are running right behind them.”
The
London-based Moving Mountains Foods — which has been dubbed the “Impossible
Burger of Europe” — just announced a major partnership with the Hard Rock Café
and will introduce its B12 burger (named after its vitamin B12-rich wheat, soy
and pea protein patty) to 23 Hard Rock Café locations across Europe, including
London, Rome, Paris and Prague.
Moving
Mountains burgers can already be found in 3,000 fast-casual and casual-dining
locations across Europe, including Applebee’s, Harvester, Ed’s Easy Diner,
Nikki Beach and O’Neill’s Irish Pub & Bar.
Like
the Impossible Burger, the B12 burger “bleeds” (with beetroot juice), but
Moving Mountains does not want to be seen as “just another” meatless burger and
must work within European food rules and regulations that restrict the usage of
genetically modified products.
Although
Moving Mountains is not available in North America, a spokesperson said the
company hopes to launch its products abroad soon.
Hormel
Foods Corp., widely known as the brand behind the Spam canned pork brand, is
exploring the growing alternative-meats industry and will soon launch a vegan
pizza topping in response to increased demand for meat-free alternatives.
"The
consumer seems to be speaking about having plant-based as a choice," said
Jim Snee, CEO and president of Hormel, at the 2019 dbAccess Global Consumer Conference in Paris.
"We
understand that it is a shiny new toy. We get that. It is one of our shiny new
toys as well. It is something that is certainly on our minds, like it is
everyone else, and there is a lot of work happening both in the market and
behind the scenes."
This
is not the company’s first foray into products that reduce meat consumption.
Hormel recently launched its “Fuse Burger,” made from ground turkey and rice,
to retailers and foodservice distributors nationwide.
“We
think that consumers, in terms of engaging with products like this, a lot of
times the first place that happens is in a restaurant, off of a menu,"
Snee said during the conference. "So we are hard at work to make sure we
have the foodservice offering that can help consumers connect with that space
and make a decision if that's something they want to continue to pursue."
So, are you looking for a new partnership to drive sales? Are you ready for some
fresh ideations? Do your food marketing tactics look more like yesterday that
tomorrow? Better start thinking about plant based food. Visit www.FoodserviceSolutions.us for more information
or contact: Steve@FoodserviceSolutions.us Remember success
does leave clues and we just may have the clue you need to propel your
continued success.
