The latest version of Beyond Burger, made with avocado oil and 20% less sodium
Source: Beyond Meat
Beyond the meat is launching a new version of its plant-based burger in grocery stores this spring, betting that an even healthier version of its burgers will appeal to consumers.
Wednesday's filing comes at a crucial time for Beyond as a company. The once-trendy plant-based meat category has lost consumer interest. Retail sales of meat alternatives had fallen 33.6% compared to the previous year through January 28, according to data from Circana.
As a result, Beyond's retail and restaurant sales have plummeted. In the third quarter, its sales had fallen 29% compared to the last two years. So has the company's market value, which has fallen to $463 million, from a high of $14.14 billion four and a half years ago. The stock has fallen 60% over the past year.
The embattled company has always maintained that its meat substitutes are healthier than the real thing. But Beyond claims the newest version of its beef has less sodium and saturated fat than ever. The reformulation is the biggest improvement to its recipe since the burger was originally launched in 2016, according to Beyond CEO Ethan Brown.
“I think Beyond IV represents a leap forward, versus an incremental step,” Brown told CNBC.
The new burger uses avocado oil, reducing its saturated fat by 60% to two grams. Beyond also reduced sodium in plant-based meat by 20%. The ingredients list is shorter but features other new additions, such as red lentils and fava bean protein.
“Over the last few years, there has been a combination of campaigns and other efforts to try to poison the well regarding the health benefits of plant-based meat,” Brown said. “Following the spirit of iron to sharpen iron, we have tried to create products that are now completely unassailable from a health point of view.”
Critics have attacked plant-based meat from Beyond and its rivals as processed and full of chemicals. In November, Brown said on the company's conference call that supporters of the campaign to smear plant-based meat as unhealthy were likely members of the meat and pharmaceutical industries.
Beyond said it worked with Stanford University School of Medicine and registered dietitians, among other experts, to inform the development of the new product.
Beyond is expected to report its fourth-quarter earnings after the bell on February 27.
— Kate Rogers contributed reporting to this story.
