Costco to sell Beyond Meat's steak product
Beyond Meat said its steak product would be available at select locations
Beyond Meat Inc. announced on Tuesday that its steak product would be available for purchase at select Costco locations.
"Starting this month, Costco members of 50+ warehouses across Arizona, Nevada, New Mexico, Colorado and Southern California can savor the flavorful, delicious bite of seared steak tips while enjoying all the added health and environmental benefits of plant-based meat," it said.
Beyond Meat said the product is its debut in the plant-based steak world.
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The partnership with Costco comes as the plant-based meat maker faces weaker demand. In its latest quarterly earnings report, the company said its revenue fell 22.5% in the third quarter as it cut prices.
Beyond Meat President and CEO Ethan Brown said consumers have been switching to cheaper proteins like chicken because of high inflation. That hurts demand for products like Beyond burgers, which cost about $2 more per pound than lean beef ones.
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At the same time, Brown said, more companies have been entering the plant-based market, leaving them fighting over dwindling sales.
"The current economic environment has not been kind to plant-based meat," Brown said during a conference call with investors.
But Brown said Beyond Meat is focusing on turning around its own business. The company has reduced operating expenses by 23% since the first quarter and has laid off 240 people – or more than 20% of its global workforce – since August.
Founded in 2009, the Los Angeles-based company said Beyond Steak takes five minutes from air fryer or skillet to the plate.
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As of last September, Beyond Meat products were available at approximately 188,000 retail and food service outlets in over 85 countries worldwide.
The Associated Press contributed to this report.