According to the Intelligence Financial APP, Beyond Meat (BYND.US) will launch a muscle-only steak alternative as part of its strategy to win health-conscious consumers.

CEO Ethan Brown said on Wednesday that this launch may include partnering with a chain restaurant known for providing healthier food, which is different from the previous strategy of partnering with fast food chains such as Dunkin' and McDonald's (MCD.US).

Six months ago, Beyond announced a profit-turning strategy, including cost-cutting, price increases, and discontinuation of jerky products produced through a joint venture with PepsiCo (PEP.US). In order to revive sluggish sales, the company has focused its marketing efforts on the health benefits of plant-based diets through partnerships with organizations such as the American Cancer Society and collaborations with college athletes. While health has always been part of Beyond's consumer messaging, the company has also placed greater emphasis on climate change in the past.

In recent months, Brown has attributed some of the challenges in the plant-based meat industry to misinformation from the meat industry and cattle breeders, such as doubts about the processing of plant-based meat.

Beyond has already sold plant-based steaks, but the new product uses mycelium (the root-like part of fungi) to mimic the texture of filet steak. Brown envisions using the steak as a protein source in salads and as a filling in Mexican burritos.

He said, "The focus people are paying attention to is fewer ingredients, high protein content, and low saturated fat content."

The company also introduced new formulas for Beyond Burger and Beyond Chicken to grocery stores. The ingredient list of the new products is short, hoping to win over customers who previously thought that plant-based meats were overprocessed.

Beyond refuses to disclose any details about the launch time.

Loss of customers and investors.

Beyond's market cap once exceeded $14 billion, driving broader investments in plant-based meats and spawning numerous competitors.

But now, the company's market cap is less than $0.4 billion, reflecting investors' concerns about the company's business health and industry sales challenges. In 2024, the company's market cap evaporated by one-third.

In the second quarter of this year, Beyond's net sales were $93.2 million, a year-on-year decrease of 8.8%, a 37% decrease compared to the second quarter of 2021.

After Beyond went public five years ago, its stock price soared as more and more consumers purchased its plant-based meats at grocery stores and fast food chains like Dunkin'. The COVID-19 pandemic further boosted the company's sales as lockdown measures encouraged more home cooking, but this boost did not last.

Although Beyond has had greater success with collaborations with chains in the European market, close partnerships with dining giants like McDonald's and Yum Brands (YUM.US) have not helped its products become a permanent fixture on menus in the USA. Beyond's joint venture with PepsiCo only produced one product, beef jerky, which has since been discontinued and has dragged down the company's profit margin for several quarters.

At the same time, a wider range of categories is starting to struggle. Consumers have lost interest in trying plant-based meats, often complaining about their taste or concerns about the processing.

According to the Plant Based Foods Association, sales of plant-based foods, including milk, meat, egg, and butter substitutes, increased by only 1% to reach $8.1 billion last year. Milk substitutes accounted for about a quarter of the retail total in this category, followed by plant-based meats.

With the changing consumer tastes, investors have also lost interest.

Kellanova(K.US), the spin-off company that Mondelez is acquiring, considered splitting or selling its plant-based meat business into three parts, but ultimately chose to keep it. It is rumored that Impossible Foods has been considering an IPO since 2021, but the company's CEO stated earlier this year that it might sell or go public within the next three years, extending the timeline for this plan.

However, as for Beyond Meat, Brown stated that the company has no plans to sell.