Plant-based food companies hope to grow as U.S. meat supply struggles

The coronavirus pandemic has forced some meat processing plants to shut down, disrupting the food supply chain and causing grocers to limit meat purchases.

Companies offering plant-based alternatives are hoping to gain traction amid that turmoil.

Ethan Brown, founder of Beyond Meat, said Tuesday that his company is hoping to appeal to consumers by offering more competitive prices for their products and, where meat is not available, a real alternative.

“This is the industry’s moment,” Brown told Yahoo! Finance.

He said the deaths from the coronavirus pandemic are “heart-wrenching”, but added, “We need to make sure that we are part of a solution.”

He said his company will offer discounts and use the summer season to get shoppers to try the food.

Beyond Meat, based in El Segundo, Calif., reported a first-quarter net income of $1.8 million after reporting a loss in the same period in 2019.

Issues with meat plants and supply demands have also caused meat prices to rise. And shortages have struck Wendy’s fast food restaurants, causing burgers to become unavailable at some locations.

Impossible Foods, another plant-based food company, is also hoping to grow by expanding its presence by being available in more stores.

The company’s CFO, David Lee, told MarketWatch it’s “full steam ahead.”

The company’s Impossible Burger will be available at more grocery stores around the U.S., coinciding with demand for the company’s beef and pork substitutes, according to MarketWatch.

The Impossible Whopper is still also available at Burger King restaurants.

Analysts believe customers may try these products if meat and hamburgers are not available.

“We believe that growth trajectory could skew higher in the near-term, as a potential meat shortage may lead to increased trial of plant-based options as an alternative,” an analyst told the Financial Times.