Conflicting signs over vegan food

Mixed messages emerged this week over the future of moves towards a plantbased diet.

While the Co-op Group slashed the price of its vegan and plant-based burgers and sausages in a move which it claimed was designed to push back against the “unfair” price of vegan food, a major independent corporate finance advisory firm issued a warning on the drop in the share price of one of largest global producers of vegan foods.

The Co-op announced it would price match its ownbrand plant-based food range against equivalent meat products to help shoppers adopt “flexitarian” diets, adding that the decision was also part of its desire to move towards net zero status for its own-brand goods.

However, commenting on the slide in shares of Beyond Meat, the Los Angeles-based producer of plant-based meat substitutes, London-based corporate advisors Oghma partners urged caution.

“The reaction of the market highlighted in the share price movement of Beyond Meat to recent disappointing sales data highlights the difficulty of sustaining premium valuations in the plant based food sector if expected growth rates are not sustained ,” said Oghma’s Mark Lynch.

He said that increased price competition and, more sluggish consumer uptake raised questions around brand strength, intellectual property and differentiation.

“If the market becomes saturated with me-too as well as own-label products then the excitement around plant-based products may fade to some extent and perhaps lead to a greater focus on businesses with a higher level of intellectual property protection in the sector.”