Beyond Meat is moving beyond its core business. President and CEO Ethan Brown told investors last week that the company is pivoting toward functional beverages, positioning itself as "a beverage company in hiding" as it grapples with a 15 percent decline in net revenue to $58.2 million during the first quarter.
The company announced Beyond Immerse, a protein-packed sparkling beverage with added fiber, vitamins, and electrolytes, which launched for a limited time on its e-commerce site earlier this year. Immerse is now rolling out across New York this summer through a partnership with distributor Big Geyser, marking the first product under Beyond's broadened scope. The company recently changed its name to Beyond The Plant Protein Company to reflect ambitions outside alternative meat.
Brown emphasized that Beyond's experience formulating plant-based protein gives it a competitive edge in what he described as a "rapidly expanding functional beverage market." The company has recruited board members with deep beverage expertise to guide the expansion, including former Coke CFO Kathy Waller, Honest Tea founder Seth Goldman, and Boston Beer founder and CEO Jim Koch.
Stabilizing the meat business
Beyond is also working to stabilize its core plant-based meat segment through expanded distribution and revamped retail placement. A significant challenge emerged when retailers moved Beyond products from fresh refrigerated sections to frozen aisles, hitting sales. The company is now rebuilding its frozen retail brand while using beverages as a gateway to consumers.
Brown framed the beverage strategy as a way to introduce consumers to Beyond's brand qualities in "less controversial applications." He argued that once consumers try the drinks and experience Beyond's commitment to taste and clean ingredients, they may return to plant-based meat at the center of their plates. This approach addresses the persistent skepticism that has haunted the plant-based meat category even as alternatives have proliferated on retail shelves.
Moving past headwinds
Beyond has faced years of consumer pushback and retail volatility. The company cited what it called a "cloud of misinformation" that impeded growth. Brown said Beyond has innovated under "more scrutiny than any other company ever" in plant-based protein, and that experience has equipped it with disciplines and capabilities to succeed in adjacent categories.
The beverages launch comes as Beyond contends with broader headwinds in the plant-based sector. Demand for alternative proteins has cooled from pandemic peaks, and retailers have reduced shelf space. By entering functional drinks, Beyond aims to capture growth in a category that is attracting consumer spending and brand attention more readily than plant-based meat.