Beyond Meat to launch new steak alternative as it focuses on health

Beyond Meat will introduce a whole-muscle steak alternative as part of its pivot to win over health-conscious consumers.

CEO Ethan Brown said on Wednesday that the rollout will likely include a partnership with a restaurant chain known for serving healthier food, a departure from its prior strategy of teaming up with fast-food chains like Dunkin’ and McDonald’s.

More than six months ago, Beyond announced a turnaround strategy that included cutting costs, hiking prices and discontinuing the jerky product it made through a joint venture with PepsiCo. To revive slumping sales, the company’s marketing has focused on the health benefits of eating a plant-based diet through partnerships with organizations like the American Cancer Society and influencer deals with college athletes. While health has always been part of Beyond’s pitch to consumers, the company used to put more emphasis on climate change, too.

In recent months, Brown has blamed some of the plant-based meat industry’s woes on misinformation from the meat industry and cattle farmers, like skepticism about plant-based meat’s processing.

Beyond already sells plant-based steak tips, but the new product mimics the texture of a filet with mycelium, the rootlike part of fungi. Brown envisions the steak alternative as a substitute for chicken — topping salads and stuffing burritos as a source of protein.

“The focus on this has been a very small number of ingredients, very high protein, very low saturated fat,” he said.

The company is also rolling out reformulated versions of its Beyond Burger and Beyond Chicken to grocery stores. The new products have short ingredients lists, in the hopes of winning over customers who previously thought plant-based meat was too processed.

Beyond declined to share any details on the timing of the launches.

Beyond’s market value once topped $14 billion, fueling broader investment into plant-based meat and a flood of competitors.

But these days, the company has a market cap under $400 million, reflecting investors’ concerns about the health of the business and the industry’s struggling sales. Its stock has lost a third of its value in 2024.

In the second quarter, Beyond reported net sales of $93.2 million, down 8.8% from the year-ago period and a 37% tumble from its second quarter in 2021.

After Beyond went public five years ago, its stock soared as more consumers bought its plant-based meat at grocery stores and fast-food restaurants like Dunkin’. The pandemic further boosted sales as lockdowns encouraged more at-home cooking, but the lift didn’t last.

Buzzy partnerships with restaurant giants like McDonald’s and Yum Brands didn’t lead to permanent menu items in the U.S., although Beyond has had more success with the chains’ European markets. Its joint venture with PepsiCo led to a single product, its now-discontinued jerky that weighed on its margins for several…