beyond meat will launch a new version of its plant-based burger in grocery stores this spring, betting that the healthier version will lure consumers back.
Wednesday’s announcement comes at a pivotal time for Beyond as a company. Once a hot topic, the plant-based meat category has lost consumer interest. Retail sales of meat substitutes were down 33.6% year-over-year as of January 28, according to Sarcana data.
As a result, sales at Beyond’s retail stores and restaurants plummeted. Third-quarter sales were down 29% over the past two years. The company’s market value has also fallen, falling to $463 million from a high of $14.14 billion four and a half years ago. The stock price has fallen 60% in the past year.
The embattled company has always maintained that its meat substitutes are healthier than the real thing. But Beyond is touting its latest version of its beef as lower in sodium and saturated fat than ever before. According to Beyond CEO Ethan Brown, the reformulation is the biggest improvement to the recipe since the burger was launched in 2016.
“I think Beyond IV represents a leap forward rather than an incremental step,” Brown told CNBC.
The latest version of Beyond Burger uses avocado oil and has 20% less sodium.
Source: Beyond Meat
The new burger uses avocado oil and cuts 60% of saturated fat to just 2 grams. Beyond also reduced sodium in its plant-based meats by 20%. The ingredient list is shorter but includes other new additions such as red lentil and broad bean protein.
“In recent years, there has been a combination of campaigns and other efforts to poison the well when it comes to the health benefits of plant-based meat,” Brown said. “In the spirit of sharpening iron, we have strived to create a product that is completely safe from a health point of view.”
Critics have attacked Beyond and its competitors’ plant-based meat products as processed and full of chemicals. Back in November, Brown said on the company’s conference call that supporters of the campaign to denigrate plant-based meat as unhealthy were likely members of the meat and pharmaceutical industries.
Beyond said it collaborated with experts including Stanford University School of Medicine and registered dietitians to provide input on the development of the new product.
Beyond is expected to announce its fourth quarter results after the bell on February 27th.
— CNBC kate rogers contributed reporting to this article.
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