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Plant-based protein companies poised to expand products, distribution next year

Beyond Meat wants to add more product types and sales points
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A package of meatless burgers are seen in Orlando, Fla., on June 26, 2019. When A&W started serving Beyond Meat veggie burgers at its restaurants, the fast-food chain offered many patrons their first bite of the much touted, celebrity backed plant-based patty. In the year and a half since, Canadians continued searching for plant-based options at home and on the go. By the time A&W added a plant-based nugget in December, many fast-food chains B次元官网网址 even long-time holdout McDonaldB次元官网网址檚 Canada B次元官网网址 boasted a trendy vegetarian menu item, too. THE CANADIAN PRESS/AP, John Raoux

When A&W started serving Beyond Meat veggie burgers at its restaurants, the fast-food chain offered many patrons their first bite of the much touted, celebrity backed plant-based patty.

In the year and a half since, Canadians continued searching for plant-based options at home and on the go.By the time A&W added a plant-based nugget in December, many fast-food chains B次元官网网址 even long-time holdout McDonaldB次元官网网址檚 Canada B次元官网网址 boasted a trendy vegetarian menu item, too.

As restaurants jumped on the plant-based protein craze this past year, the products also proliferated on grocery store shelves.

Earlier this month, Beyond Meat announced grocers across the country would start stocking its Beyond beef product, which mimics ground beef. It launched its burgers in the summer and theyB次元官网网址檙e now sold at more than 4,000 stores in the country.

Lightlife, meanwhile, boasts seven plant-based protein products with national distribution in Canada, and Field Roast Grain Meat Co. makes about four that are sold in many parts of the country. Both brands belong to Chicago-based Greenleaf Foods SPC, a wholly-owned, independent subsidiary of Mississauga, Ont.-based Maple Leaf Foods.

Kicking off the trend, Health Canada revealed a new food guide in January recommending people B次元官网网址渃hoose protein foods that come from plants more often.B次元官网网址 It minimized meatB次元官网网址檚 dominant position in the previous iteration and put the meat industry on the defensive for their share of consumer plates.

As interest in alternative protein grew, backlash bubbled.

But the folks leading major plant-based manufacturers say consumers want their products and plan to add more varieties and sales points, create tastier options and lower their prices to beat out bargain meat.

A&W sparked a consumer frenzy when it debut the companyB次元官网网址檚 veggie burger in July 2018. The chain temporarily sold out of the patties, having under-estimated peopleB次元官网网址檚 appetites.

That sales spike wasnB次元官网网址檛 a flash in the pan, either. Demand B次元官网网址漵tayed remarkably stableB次元官网网址 since that temporary shortage, said chief executive Susan Senecal.

A&W added a new veggie option this month B次元官网网址 Lightlife nuggets. Only its Ontario and B.C. restaurants stock the chicken-nugget imitation, and A&W expects to sell out by the new year. Still, in a sign of the industryB次元官网网址檚 strength, the company hopes eventually to offer the nuggets nationwide.

B次元官网网址淚 think thereB次元官网网址檚 a huge opportunity for growth in Canada,B次元官网网址 says Ethan Brown, the founder of California-based Beyond Meat.

B次元官网网址淲eB次元官网网址檙e just getting started.B次元官网网址

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Beyond Meat wants to add more product types and sales points, so consumers can find every type of meat substitution conveniently.

After A&W introduced Beyond Meat burgers to Canadians, other eateries raced to offer something for vegans, vegetarians or B次元官网网址 most frequently, it seems B次元官网网址 flexitarians. The latter describes those who sometimes swap meat for other options for environmental, health or animal welfare reasons.

Today, many fast-food chains boast a veggie burger, some pizza places offer veggie ground B次元官网网址渕eatB次元官网网址 or vegan cheese as toppings, and Kentucky Fried Chicken Canada dabbled with plant-based fried chicken sandwiches and popcorn chicken options at a single restaurant for one day.

McDonaldB次元官网网址檚 Canada, which long resisted consumer calls to bring back a veggie burger, decided to pilot a PLT B次元官网网址 a Beyond Meat sandwich B次元官网网址 for 12 weeks, starting in late September, at 28 restaurants in southwestern Ontario.

The company is trying to understand what place plant-based proteins may have in its operations, said John Betts, McDonaldB次元官网网址檚 Canada chief executive.

He believes it wonB次元官网网址檛 canniabalize the companyB次元官网网址檚 meat product sales, but will likely reflect what he calls B次元官网网址渢he salad effect.B次元官网网址 When McDonaldB次元官网网址檚 first introduced salads in the 1980s, it removed what executives dubbed B次元官网网址渢he veto voteB次元官网网址 of someone preventing a group visit to McDonaldB次元官网网址檚 because it didnB次元官网网址檛 suit their dietary needs or preferences, he said.

B次元官网网址淧lant-based protein could be the new salad type of option,B次元官网网址 he said, stressing the chain expects the addition to drive up meat sales, which remains the companyB次元官网网址檚 focus.

With burgers, nuggets and other plant-based forms becoming ubiquitous, pushback started. In particular, meat producers are taking aim at claims that alternative proteins offer better health benefits.

The Quebec Cattle Producers Federation called on the countryB次元官网网址檚 food inspection agency to intervene on what it called misleading advertising on Beyond MeatB次元官网网址檚 products, saying the company shouldnB次元官网网址檛 be permitted to use the word meat.

The Centre for Consumer Freedom, a Washington, D.C.-based non-profit organization funded by food industry and consumers, took on the issue of what it calls B次元官网网址渇ake meat.B次元官网网址 It launched a website and created advertisements alleging some plant-based protein products use potentially harmful chemicals and can be worse for humans than their meat counterparts.

B次元官网网址淚tB次元官网网址檚 unfortunate,B次元官网网址 said Beyond MeatB次元官网网址檚 Brown of the organizationB次元官网网址檚 campaign he says is geared toward scaring consumers from eating food that will benefit them.

The burger, for example, contains no trans fat or cholesterol, and 20 grams of protein, according to the company. It does include 16 per cent of the daily recommended sodium content, which is comparable to a seasoned meat patty.

Beyond Meat will launch a substantial marketing initiative in Canada next year, said Brown, as it looks to grow its presence in the country.

B次元官网网址淭he products that we have are limited in scope. They need to be improved and we need to expand our market presence.B次元官网网址

He envisions a future where shoppers can select a Beyond Meat alternative for any animal protein cut they were shopping for at the grocery store, such as a boneless chicken breast or steak, and where diners can sample more of its product range at restaurants. Beyond Meat anticipates more partnerships next year.

For some consumers though, the price presents a roadblock. A pack of two Beyond burgers costs $7.99 plus tax at one Canadian grocery chain, compared with $12.99 for an eight-pack of its house-brand burgers.

Brown aims to lower prices to undercut animal protein within five years, though it may happen sooner in certain segments.

Greenfield, too, believes thereB次元官网网址檚 room for growth in Canada.

B次元官网网址淚n totality, the plant-based products that are being sold are still in its infancy,B次元官网网址 said president Dan Curtin, adding household penetration remains low for the category.

Vegans, vegetarians and flexitarians, especially, continue looking for more options.

B次元官网网址淲e still see significant growth opportunities,B次元官网网址 Curtain said.

B次元官网网址淏ut itB次元官网网址檚 beyond just the core products that are out there,B次元官网网址 he added, pointing to the companyB次元官网网址檚 partnership with A&W for the limited-time plant-based nugget offering.

Greenfield plans to continue creating new products to add to its restaurant and grocery distribution channels.

B次元官网网址淚t is about innovation.B次元官网网址

Aleksandra Sagan, The Canadian Press


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