Plant-based eating goes mainstream as Beyond Meat targets Canadian grocery shelves

A California company that was overwhelmed by demand for its meatless fast food burger is hoping to capitalize on the rising trend of vegetarianism and sell directly to Canadiangrocery stores starting now.

Founded a decade ago in California, Beyond Meat first captured the attention of Canadians when the company signed a deal with burger chain A&W last year for a plant-based burger one they claim looks and tastes like traditional patties, but is made entirely fromvegetable-based proteins.

A&W was flooded by so much demand for the product that most locations sold out almost instantly, and has had trouble maintaining supply ever since. ButBeyond Meat is pushing ahead with more expansion, confident those supply issues have been handled.

After focusing on getting its products into some27,000 restaurants around the world, Beyond Meat has now turned its attention to selling directly to consumers. Ithas struck deals with major food chains like Loblaws, Sobeys, Metro and Longo's that will see the company's plant-based burger patties sold in thousands of Canadian grocery stores.

"On the heels of our successful launch with A&W ...retail is the natural next step for our brand," CEOEthan Brownsaid in a release announcing the move.

Billions worth ofburgers

Robert Carter, a Toronto-based consumer analyst with NPDgroup, said Beyond Meattapped into what was a slowly growing movementtowardplant-based eating, and became a leader almost overnight.

"I had seen the underpinnings, but even I didn't expect it to be as popular as it is," Carter said in an interview.

While fast growing, Beyond Meat is far from the only company in the space.

Market research firm Mintel estimates that the market for meat alternatives has almost doubled between 2013 and today, and restaurant chains have been trying to tap into that trend.

Burger King partnered with Impossible Foods to create the Impossible Whopper, a meatless alternative to the chain's iconic offering. So far, it is only available in select markets, but it too has seen strong sales and is expected to become a permanent offering.

And earlier this month, Canada's Maple Leaf Foods announced plans to spend $310 million to build a huge plant-based protein food processing facility inShelbyville, Ind.,which will produce the company's Lightlife products, a line of plant-based food items. "We own the leading brands in the North American refrigerated plant-based protein market," CEO Michael McCain said of the venture.

All of these companies are hoping to cash in on the growing trend towards plant-based eating, which has hit something of a tipping point because ofconsumers millennial-aged and younger. While they may be ahead for now, Beyond Meat "needsto capture as much as they can," Carter said, "because the big players are going to get in on this game very quickly."

He saidit's a market opportunity because younger consumers are much more aware of the food they eat, and want to consider the environmental and social impacts on top of the taste and price.

"These guys have got a product that is so on trend right now," he said, referring to the company's eponymous burger. He saidpartnering with a fast food chain was a savvy opening move because it gets the product into the hands of potential testers who likely wouldn't ordinarily consider buying it uncookedon a shelf.

Even calling it "plant-based," as opposed to the outdated term "vegetarian," has helped Beyond Meat win over consumers who'd never consider themselves to be the latter. "The messaging has been very well done," Cartersaid.

Calls for Canadian food innovation

Vegetarians aren't the company's target market.

"Whether you're a hardcore carnivore or a strict vegan, you should be able to have our burgers, enjoy what you're eating and feel great afterward," said Brown, Beyond Meat's CEO.

Nova Scotia-based chain Sobeysis first out of the gate on the grocery side in Canada, with the burger available in every region where the company operates as of Friday. Other chains will follow next month, Beyond Meat said.

Sylvain Charlebois, a professor in food distribution and policy at Dalhousie University, saidthe move away from meat is very much a trend and Beyond Meat has jumpedto the head of the packfor now.

"Rarely in Canada have we seen a supplier orchestrate such a well-coordinated, timely invasion of a market through careful management and marketing," he said. "Now grocers are drinking the proverbial plant-based Kool-Aid, all at once."

His only beefis that he'd like to see a Canadian-made product growing so rapidly on Canadian shelves.

"It's an American product, fostered and propelled by American entrepreneurial spirits," he said. "Our way of thinking regarding food innovation suppresses any chance for a company to come up with a project like this. There are glimmers of hope, however, as startups are erupting all over the place and will bring a proper dosage of innovation, in due course."