Beyond Meat vs Impossible Burger | Beefing Up, Chowing Down | 3 AI transcript and summary - episode of podcast Business Wars
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Episode: Beyond Meat vs Impossible Burger | Beefing Up, Chowing Down | 3
Author: Wondery
Duration: 00:32:02
Episode Shownotes
It’s 2019 and plant-based meats are on fire. But they’re also under fire. Supporters of the beef industry start a food fight with the plant-based meat industry. It kicks off on Super Bowl Sunday, with an aggressive TV ad. But Pat Brown’s Impossible Foods fights back with an ad of
its own. Meanwhile, Ethan Brown pushes Beyond Meat to grow at all costs. As debts mount, Ethan tries to get the king of burgers, McDonald’s, to bite on a new plant-based patty. And, as the heat turns up at both companies due to pandemic-induced demand for their products, some employees get queasy about their company’s founders.Listen to Business Wars on the Wondery App or wherever you get your podcasts. Experience all episodes ad-free and be the first to binge the newest season. Unlock exclusive early access by joining Wondery+ in the Wondery App or on Apple Podcasts. Start your free trial today by visiting wondery.com/links/business-wars/ now.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Summary
In this episode of Business Wars, the intense competition between Beyond Meat and Impossible Foods in 2019 is explored. Both companies strive to dominate the plant-based meat sector as they confront critiques from the traditional beef industry. Impossible Foods' aggressive advertising and scaling ambitions clash with Beyond Meat's financial challenges and partnerships with fast-food giants like McDonald's. Amidst significant public interest and internal pressures, both companies navigate a rapidly changing market towards establishing themselves as key players in the plant-based revolution.
Go to PodExtra AI's episode page (Beyond Meat vs Impossible Burger | Beefing Up, Chowing Down | 3) to play and view complete AI-processed content: summary, mindmap, topics, takeaways, transcript, keywords and highlights.
Full Transcript
00:00:00 Speaker_09
Wondery Plus subscribers can binge all episodes of Business Wars Beyond Meat vs. Impossible Burger early and ad-free right now. Join Wondery Plus in the Wondery app or Apple Podcasts. It's a warm summer's day, 2019, in Redwood City, California.
00:00:25 Speaker_09
Inside a brightly lit conference room at Impossible Foods headquarters, a sweaty Pat Brown tugs at the collar of his t-shirt. It's emblazoned with a No Cows logo. Pat, the biochem professor who is this company's founder, isn't just hot, he's bored.
00:00:42 Speaker_09
He and a team of executives are attending an employee review. The executives want to promote some employees who have been working hard to get the Impossible Burger into grocery stores for the first time. but Pat just wants to get back to his research.
00:00:56 Speaker_09
Hey, let's move this along. We have a lot of work to do in the lab that's more important than yammering about job titles. Pat's outburst momentarily silences the meeting's leader.
00:01:07 Speaker_09
He's Dennis Woodside, a square-jawed, gray-haired, middle-aged attorney turned executive who left his job as chief operating officer at Dropbox to become president of Impossible Foods and ramp up the company's operations ahead of its grocery store debut.
00:01:22 Speaker_09
Woodside glares at Pat. I love that title. F*** the meat industry. And that's exactly what we're trying to do here. We're on a mission to push the beef industry into a death spiral.
00:02:02 Speaker_09
And after we do that, we'll tell pork and chicken that they're next and send them into bankruptcy too. Pat pushes his chair back from the conference table and stands up. He points at Woodside.
00:02:14 Speaker_09
What we should care about is making sure we double our production every year for the next 15 years. To beat the meat industry and become the most impactful company in the history of the world, we need to scale up 30,000-fold.
00:02:29 Speaker_09
An exasperated Woodside clasps his palms together and squeezes tight as he tries to keep his cool. After just a few months on the job as Impossible Foods president, he's already learned that his boss loves to start an argument.
00:02:43 Speaker_09
He tries to diplomatically defuse the situation. Pat, we're all on board with your big ambitions. But if we're going to achieve all that growth, we should probably start by wrapping up this meeting, huh?
00:02:57 Speaker_09
Can you please, please just approve these new titles? If I say yes, can I go back to the lab? You can. Then fine. Yes, I approve. Pat picks up a white lab coat and quickly heads back to his research.
00:03:12 Speaker_09
Whether in spite of or because of his unusual academic approach to business, Impossible Foods is really cooking. But as his plant-based burgers enter their next phase of growth, Pat may find that he's bitten off more than he can chew.
00:03:32 Speaker_00
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00:03:42 Speaker_00
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00:03:51 Speaker_10
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00:04:12 Speaker_09
From Wondery, I'm David Brown, and this is Business Wars. In our last episode, celebrity chefs put the Impossible Burger on their menus, and Burger King debuted an Impossible Whopper.
00:04:48 Speaker_09
Demand for Pat Brown's plant-based patties was so big that Impossible Foods couldn't keep up. But while Pat's company struggled, Ethan Brown's Beyond Meat soared. It got its Beyond Burgers into the meat case at supermarkets across the country.
00:05:04 Speaker_09
And on Wall Street, Beyond Meat's initial public offering was one of the biggest in decades. But all the hype surrounding both brands drew the attention and the ire of beef lobbyists and cattlemen. Now they're gunning for plant-based meats.
00:05:21 Speaker_09
As Pat prepares to fight back, Ethan sets his aim on both his competitors and a deal with the biggest burger seller in the world. This is episode three, Beefing Up, Chowing Down. It's summer 2019 in El Segundo, California.
00:05:44 Speaker_09
Inside the test kitchen of Beyond Meat, a chef is grilling up the newest prototype for the company's Beyond Burgers. Beyond Meat's CEO, Ethan Brown, pulls up a chair at a small table and folds his six-foot-five frame into the seat.
00:05:58 Speaker_09
Across from him, a journalist from The New Yorker named Tad Friend also pulls up a chair. What do you like on your burger, Tad? Just the usual. Lettuce, tomato, mayo if you got it. Sure. It's vegan mayo, though.
00:06:10 Speaker_09
56-year-old friend nods his head of sandy blonde hair in approval. He's here today to interview Ethan for an article. But the focus of the story isn't Ethan Brown and Beyond Meat. It's actually about Pat Brown and Impossible Foods.
00:06:25 Speaker_09
The chef arrives and slides two Beyond Burgers onto the table. They're both served on toasted buns and have been topped with a generous slather of mayo, a crisp piece of lettuce, and a thick slice of beefsteak tomato. Dig in, Dad.
00:06:39 Speaker_09
Friend picks up a knife and cuts his burger in half. Juices run out of the center.
00:06:43 Speaker_06
We get that bloody effect by putting beet juice in our burgers.
00:06:47 Speaker_09
And over at Impossible, they get the same effect by using heme, right? Yes. Heme is their main coloring agent. Friend eyes Ethan quizzically. He pulls a reporter's notebook from his nearby messenger bag and flips through some pages.
00:07:01 Speaker_09
Actually, Ethan, I wrote something down that Pat told me... Where is it now? Yeah, he said that the heme in his plant-based burgers is the exact same molecule that gives meat from animals its beefy taste.
00:07:13 Speaker_09
In fact, he called it a, quote, magic ingredient. Ethan lifts his burger in one hand and waves it dismissively at the visiting reporter.
00:07:21 Speaker_06
There's nothing magic about it. Our scientists have studied heme. We don't think it makes their burgers taste like beef. In fact, we don't think it provides any flavor at all.
00:07:31 Speaker_09
Ethan takes a big bite out of his Beyond Burger. With his mouth full, he takes another bite back into Impossible Foods.
00:07:38 Speaker_06
This burger we're eating contains pea protein, mung beans, brown rice, and coconut oil. And we've worked our butts off to get all that to taste as much like beef as possible. Pea protein can have some really off flavors. We've mostly fixed that.
00:07:52 Speaker_06
But the best thing about pea protein is that it's not soy.
00:07:56 Speaker_09
Friend flips a few more pages in his notebook, looking for something else Pat told him. Now, Pat mentioned that soy is the leading ingredient in the Impossible Burger they're selling in stores. Why does he use it when you don't?
00:08:08 Speaker_06
Our customers don't want a lot of soy. They're worried about phytoestrogen. That's the stuff that can disrupt hormones and give you man boobs.
00:08:17 Speaker_09
Friend takes a bite of his burger and makes a mental note that he finds it to be curiously dense. Swallowing hard, he resumes his questioning.
00:08:26 Speaker_09
Now, Ethan, Impossible's heme is genetically modified, and Impossible has asked the FDA to declare it safe to consume. But you don't use GMOs, even though they're in a lot of foods these days. Why not?
00:08:38 Speaker_06
I just think there's an evolutionary instinct deep within us to avoid things we don't understand, like heme. And Impossible Foods must explain to all consumers what genetically modified heme is and why it's safe. My question is,
00:08:53 Speaker_06
Do they have enough cash to stay in business while they try to explain all that?
00:08:57 Speaker_09
Friend doesn't answer Ethan's question. But when he heads back to New York to write his article, he makes sure to include Ethan's suggestion that Impossible Foods may run out of money while still proving itself.
00:09:08 Speaker_09
But when the New Yorker hits newsstands, Impossible Foods won't be running out of cash. Instead, it'll be selling out of burgers. It's September 2019 in Encino, California.
00:09:27 Speaker_09
Inside a Gelson's grocery store on Ventura Boulevard, John Bagan, the head of merchandising for the California-based chain, wonders if his eyes are playing tricks on him.
00:09:37 Speaker_09
The gray-haired executive removes his oval-shaped glasses and wipes the lenses against his blue button-down shirt. But when he puts the glasses back on, the scene he's witnessing remains the same.
00:09:48 Speaker_09
Dozens of customers are plucking packages of the brand-new retail version of the Impossible Burger out of a meat cooler. Begin approaches one customer who's just put 10 packages of Impossible Burger patties into his shopping cart. Excuse me, sir.
00:10:03 Speaker_09
Do you mind if I ask, was it just the Impossible Burger that brought you out here today? It sure was. I've never even been in a Gelson's before. I've been obsessed with the Impossible Burger ever since I had one in a restaurant two years ago.
00:10:17 Speaker_09
And how do you feel about the price we're charging? Well, nine bucks a package is a lot when you consider ground beef is three times cheaper. But until now, I've had to fill my cravings by eating the Impossible Whopper at Burger King.
00:10:30 Speaker_09
And now I get to bring it home and cook it myself. I can't wait. Begin smiles and slides aside as more customers head toward the meat case. He peers inside and realizes the store is almost out of its supply of Impossible Burgers.
00:10:44 Speaker_09
Began heads back to his nearby office and makes some calls to Gelson's store managers in Southern California. Hey, how are you guys doing on the stock of Impossible Burgers there in West Hollywood? We sold out of all of them about an hour ago.
00:10:57 Speaker_09
Wow, it's flying off the shelves in our other stores too. There's no way we could have predicted this level of pent-up demand for the Impossible Burger. Yeah, I think this might become the biggest product launch we've ever had.
00:11:09 Speaker_09
And Bagan's guess turns out to be right. Soon after the Impossible Burgers debut, it becomes the top-selling packaged food item at Gelson stores.
00:11:19 Speaker_09
And that sales success is repeated across the country, when shoppers at 100 Wegmans stores on the East Coast also quickly eat up the supply of Impossible Burgers. The successful rollout generates headlines around the country.
00:11:34 Speaker_09
But Impossible Foods isn't just making news. It's also made a powerful new enemy. In the offices of Impossible Foods, the company's communications director, Rachel Conrad, places a stack of papers on Pat Brown's desk.
00:11:54 Speaker_09
Conrad is a gray-haired former journalist who penned hard-nosed stories on the car industry. Later, she led the communications team at Elon Musk's Tesla.
00:12:04 Speaker_09
A few years ago, Pat lured her to Impossible Foods by convincing Conrad that plant-based meats could do more for the environment than electric vehicles. Conrad taps her fist on the top of the stack of papers.
00:12:17 Speaker_11
Here are the latest press clippings, Pat. There's a lot of good coverage of our launch in grocery stores, but check out the way Bloomberg wrote about it.
00:12:24 Speaker_09
Pat picks a couple of pages from the top of the stack and starts reading through them. This story says Impossible Foods joins rival Beyond Meat in supermarkets.
00:12:34 Speaker_11
Not that story, Pat. Check out the other Bloomberg story on that other piece of paper.
00:12:39 Speaker_09
Pat tosses the printout of the first story onto his desk and sees a different story headlined, Critics Challenge Health Benefits of Faux Meat.
00:12:48 Speaker_09
Let me guess, these critics are actually just the same group that's been attacking plant-based meats through newspaper ads.
00:12:54 Speaker_11
You got it, Pat. The story quotes the nonprofit Center for Consumer Freedom, the very same group that's been after us for months.
00:13:02 Speaker_09
Pat wads up the paper and tosses it toward his office wastebasket. He misses. Have you figured out who's funding this group? Is there money coming from the beef industry?
00:13:12 Speaker_11
I don't know for sure, Pat. What I do know is that the Center for Consumer Freedom has been the mouthpiece for every evil industry you can think of. Among other things, they've defended cigarette makers, and they've even attacked the Humane Society.
00:13:24 Speaker_09
And now they're coming for us. Well, maybe we should be flattered. Conrad starts frustratedly pacing in front of Pat's desk.
00:13:32 Speaker_11
You know, Pat, 60 Minutes profiled this group's executive director a while back. They called him Dr. Evil.
00:13:39 Speaker_11
And now he's writing op-eds in a bunch of newspapers and creating a few websites that claim ridiculous things like our plant-based products are just full of chemicals.
00:13:47 Speaker_11
I want to fight back so we can make sure people understand that our company is on the right side of history.
00:13:52 Speaker_09
Pat stands and retrieves the wadded up paper from his floor. He slams it into the bin. Rachel, go for it. If these people attack us again, let's take the gloves off when we fight back. Conrad leaves the room preparing for a brawl.
00:14:09 Speaker_09
Instead, she's about to get into a food fight and it will kick off on Super Bowl Sunday.
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It's Super Bowl Sunday, 2020. On one of the biggest burger-eating days of the year, Americans gather around TV sets to watch the San Francisco 49ers fight it out with the Kansas City Chiefs.
00:16:36 Speaker_09
The Chiefs are led by quarterback Patrick Mahomes and tight end Travis Kelsey.
00:16:40 Speaker_08
20-yard penalty, a first down, first and goal, pass, open, touchdown, Kelsey. Chiefs are back in it.
00:16:48 Speaker_09
During breaks in the action, viewers across the country see ads from big brands like Hulu, Bud Light, and Jeep. And in one local market, viewers also see an ad featuring children taking part in a fake spelling bee. The ad isn't promoting good grammar.
00:17:05 Speaker_09
It's attacking the contents of plant-based meats. And it was produced by Impossible Foods' nemesis, the Center for Consumer Freedom.
00:17:14 Speaker_03
Spell propylene glycol. What's that? Propylene glycol. It's a chemical used in antifreeze and synthetic meats.
00:17:26 Speaker_01
P...O... You might need a PhD to understand what's in synthetic meat. Fake bacon and burgers can have dozens of chemical ingredients. If you can't spell it or pronounce it, maybe you shouldn't be eating it.
00:17:43 Speaker_09
The ad only airs in the influential local market of Washington, D.C., so Impossible Foods workers watching the game in California don't get a chance to see it live.
00:17:53 Speaker_09
But the next day, Impossible Foods communication chief Rachel Conrad is scrambling to fight back with a commercial of their own.
00:18:01 Speaker_09
Within days, she's constructed a film set inside the company's offices and has assembled a handful of Impossible Foods employees and their children to star in their own mock spelling bee.
00:18:12 Speaker_09
In the leading role as the bee's moderator, Pat Brown is about to utter a dirty four-letter word.
00:18:19 Speaker_07
And our first word is poop.
00:18:23 Speaker_01
What? Are you supposed to say that?
00:18:26 Speaker_07
Poop. The stinky brown stuff that comes out of your butt. Poop is a mixture of incompletely digested food and billions of bacteria expelled from the bowels of animals.
00:18:37 Speaker_07
There's lots of poop in the places where pigs and cows and chickens are killed and chopped to bits to make meat. And there's poop in the ground beef we make from cows. Poop.
00:18:50 Speaker_02
Poop. P-O-O-P. Poop. Yes! In 2015, Consumer Reports tested 300 samples of ground beef. They discovered that all of it, including grass-fed and organic ground beef, contained fecal bacteria.
00:19:07 Speaker_02
Just because a kid can spell poop doesn't mean you or your kids should be eating it.
00:19:13 Speaker_09
The clapback generates just the kind of buzz Conrad has been hoping for in her bare-knuckled brawl with Impossible Foods' shadowy foe. Still, Impossible Foods has to square off with its closest competitor, Beyond Meat.
00:19:29 Speaker_09
And Beyond Meat is about to get a puncher's chance of landing a deal with the real king of burgers, McDonald's. It's January 2021, El Segundo, California. Standing at his desk in Beyond Meat's offices, Ethan Brown unfolds a large blueprint.
00:19:52 Speaker_09
A broad smile comes across his face. He's happily perusing plans for a new manufacturing and headquarters facility that he's hoping to build nearby to the space that Beyond Meat is already outgrowing.
00:20:05 Speaker_09
His moment of reverie is interrupted when one of the company's top finance executives drops by unannounced. Hey, you got a minute, Ethan? I've got the preview of last year's financials ready for you. Yeah, come in.
00:20:18 Speaker_06
Are those the plans for the new headquarters? Yep. We haven't signed the deal for the space yet, but the plans call for leasing 300,000 square feet. That's six times bigger than the space we're in now.
00:20:29 Speaker_09
Ethan grabs a pencil off his desk and taps the eraser onto a corner of the blueprint.
00:20:34 Speaker_06
Look here. This is where the fitness center will go. And over here, we've got research pods where we'll use machine learning and AI to help drive innovation. And here, we've got this massive living interior wall that'll be covered in plants.
00:20:47 Speaker_06
I'm going to ask the designers if we can grow edible plants on the wall.
00:20:51 Speaker_09
The finance executive rubs his chin as he studies the vast plans. Then he puts a single sheet of paper covered in numbers on Ethan's desk. Many of the numbers are written in red ink.
00:21:02 Speaker_09
This new headquarters looks amazing, boss, but our 2020 financials don't. Our revenues from 2020 were good. We were up 37% over the year before, but our losses are huge. Look at this. We lost $50 million last year.
00:21:17 Speaker_09
Our debts are mounting, and our share price is down almost $100 from late last year. And of course, this headquarters lease will add another $150 million in expenses. Ethan tosses the pencil down onto his desk and folds his arms across his chest.
00:21:33 Speaker_09
He looks sternly at the page of financials.
00:21:35 Speaker_06
I'll tell you what. We have a big goal here at Beyond Meat, to change the world by helping people eat less meat. The only way to achieve a big goal like that is to turn ourselves into a bigger company.
00:21:47 Speaker_06
That means I'm going to over-invest in research and development, which is what this new headquarters represents. It's true that our debts are growing, but we still need to get bigger. So I'm not going to lose sleep over a $150 million lease.
00:22:02 Speaker_09
Ethan unfolds his arms and grabs the pencil again. He slaps it against a different part of the blueprints.
00:22:08 Speaker_06
Now, check this out. This is where the finance offices are going to be. They're going to look so cool.
00:22:13 Speaker_09
Days later, Ethan signs an agreement to build his gleaming new headquarters. His building and his debt will now rise together. It's February 2021, inside Ethan Brown's office at Beyond Meat.
00:22:34 Speaker_09
Brown's assistant patches through a call from a top executive with Yum Brands. They're the company behind KFC and Taco Bell, and they're ready to add more plant-based meats to their menus.
00:22:45 Speaker_09
Hey Ethan, I wanted to let you know that the top brass here has okayed our trial partnership. We can announce it this month.
00:22:52 Speaker_06
Wow, that's awesome! We've already done so well together testing beyond fried chicken and KFC restaurants, and beyond Italian sausage pizza and Pizza Hut. I can't wait to see what we come up with together this time.
00:23:05 Speaker_09
Ethan pumps his fist when the call ends. This isn't the only good news he's gotten lately. Beyond Meat's stock has been on a tear. It's up almost 30% since the company announced its planned move into a new state-of-the-art headquarters.
00:23:19 Speaker_09
But Ethan's celebration is cut short by his assistant. Ethan, McDonald's is on line two for you. Ethan takes a deep breath. He knows this could be a big moment. He's wanted to do a deal with McDonald's from the time he first founded Beyond Meat.
00:23:36 Speaker_09
Hey, Ethan, our McDonald's leadership is interested in going ahead with test marketing your Beyond Burger patties inside our McPlant sandwich. Hey, that's awesome. Well, just hold on. We're not OK-ing it just yet. Oh, why not?
00:23:49 Speaker_09
We're just not sure whether patties made from peas and rice are a fit for a McDonald's customer. Ethan's heartbeat speeds up. He can feel beads of sweat building on his forehead. He can't let this deal slip away.
00:24:02 Speaker_06
He tries a new pitch. I'm gonna tell you something embarrassing. Before I founded Beyond Meat, my hope was to open a plant-based McDonald's. But competing with a brand as great as yours was a crazy idea. It makes more sense to be your partner.
00:24:18 Speaker_06
And if you join with us, you'll join a growing industry. The entire plant-based meat business is now projected to grow from $4 billion to $74 billion in the next decade.
00:24:28 Speaker_09
Yeah, Ethan, I've seen the same projections as you have. And we are willing to give you a shot, we just want to be careful. The best I can offer you right now is a limited testing phase over the next three years.
00:24:40 Speaker_09
And if the McPlant sells well, we'll take it nationally. If it doesn't, we'll part ways." Ethan wipes the sweat from his brow. It's not the deal he hoped for, but he finally has his foot in the door of the Golden Arches.
00:24:55 Speaker_09
But that comes just as some consumers start to decide that plant-based burgers aren't a happy meal after all.
00:25:08 Speaker_08
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Are we excited for this moment? I cannot believe it.
00:27:06 Speaker_09
Buy It Now. Stream free on Freebie and Prime Video. It's March 2021 in downtown Portland, Oregon. Impossible Foods founder Pat Brown walks into an old industrial building and stares up toward the top of its six-story atrium.
00:27:38 Speaker_09
There, a small conference room has been suspended from the rafters. Its walls aren't made from glass or plaster. Instead, they consist of twisted wood branches resembling a bird's nest.
00:27:49 Speaker_09
The 67-year-old Pat marvels at the sight, before being led to that same conference room for a meeting with the ad agency Impossible Foods has just hired.
00:27:58 Speaker_09
It's called Whedon Kennedy, better known as just W&K, and it's the same agency that came up with Nike's Just Do It slogan.
00:28:07 Speaker_09
Pat wants W&K to just do something like that for his company, as he explains to the ad executives once he enters the Nestlite conference room. COVID-19 vaccines have just begun rolling out, so Pat tugs at his mask as he begins speaking.
00:28:22 Speaker_09
I just want to say that this is a big moment for our company. We partnered with Burger King before on an ad campaign, but we've hired you all to create our first ever solo national campaign.
00:28:33 Speaker_09
And that comes at a moment when we faced a lot of questions about the chemical makeup of our meat and about the efficacy of our mission to save the climate.
00:28:40 Speaker_09
I hope that whatever you all have come up with for us can answer those questions simply and directly.
00:28:46 Speaker_09
One of the W&K executives, also masked, walks over next to Pat and takes a seat on a couch that's made out of high-density foam, shaped to resemble a gray rock. Pat, I think we have just what you're looking for.
00:29:00 Speaker_09
He points a remote control at a large screen TV that's in the corner of the room. And here's the first ad. The voice you'll hear is from Scott Glenn, you know, the actor from The Right Stuff.
00:29:11 Speaker_04
Scientists say beef is bad for the planet. But do we really care what those nerds have to say? Yes, we do. Impossible meat made from plants.
00:29:25 Speaker_09
Pat turns to the ad executive sitting next to him. That was a little short, but I liked it. Is there more where this came from? Absolutely. We've got a whole campaign, Pat, and we call it Impossible Foods. We are meat.
00:29:41 Speaker_09
Pat leaves the nest as happy as a jaybird. The campaign, along with new grocery store deals, will help raise Impossible Foods' profile as it tries to catch up to Beyond Meat. But both companies will soon face a new problem.
00:29:56 Speaker_09
Some consumers' taste for plant-based meats are about to sour. It's early 2021 in Marlton, New Jersey. Michelle Darby, a mother of four children, is at her doctor's office.
00:30:14 Speaker_09
She's waiting for her doctor to come in with the results of her cholesterol tests. Hi, Michelle.
00:30:20 Speaker_11
Hi, doctor.
00:30:22 Speaker_09
The doctor plops down on a swivel stool and skims over Darby's test results. Huh. Well, Michelle, these results are not great. You were on the border of what we consider high cholesterol when you came in last year, and you're still there this year.
00:30:36 Speaker_09
Have you made any changes to your diet in the past year?
00:30:39 Speaker_11
Yes. In the early part of the pandemic, when meat got harder to find, I started cooking a lot of chicken-less chicken nuggets and other plant-based meats for my family.
00:30:48 Speaker_11
And when I'd go to Starbucks, I swapped out their regular sausage sandwich for the Impossible Sausage Sandwich. I thought we were on the right track.
00:30:56 Speaker_09
The doctor wheels over to a computer in the corner of the room and calls up a search engine. Let's see if we can find a nutrition label here. Ah, yeah, here's one for the impossible burger.
00:31:07 Speaker_09
We've got soy protein concentrate, yeast extract, dextrose, food starch, methylcellulose, soy leg hemoglobin, and mixed acopherols. Michelle, no wonder you've not seen any changes. You've been eating processed food.
00:31:24 Speaker_09
Darby leaves the doctor's office distressed. When she gets home, she notices that a package of plant-based ground beef in her fridge contains four times the sodium of the package of ground beef in her freezer.
00:31:37 Speaker_09
She tosses it in the trash and switches her family back to less expensive animal products. Darby's not the only one turning away from plant-based meats for health reasons.
00:31:48 Speaker_09
And as sales slip and pressure mounts, some Beyond Meat workers will place the blame for their growing troubles squarely on one man, company founder Ethan Brown. It's February 2022 in El Segundo, California.
00:32:10 Speaker_09
Ethan Brown stands in front of a whiteboard inside a half-finished conference room at Beyond Meat's new headquarters.
00:32:17 Speaker_09
He tries to make himself heard over the ongoing construction, but the scientists and executives he's addressing are distracted by more than the noise. The room is in shambles. Plastic tarps hang from the ceiling. Chairs still have price tags on them.
00:32:32 Speaker_09
The company isn't in much better shape. Its bleeding cash and investors are fleeing. Now, Ethan wants to push his team to do better.
00:32:43 Speaker_06
Listen, everyone. I won't sugarcoat this. Our debt has hit one billion dollars. Our share price is down about two hundred dollars from its peak. We need to speed up the pace of our innovation. We need more intensity to get back on track.
00:32:57 Speaker_06
It starts with creating new products to sell.
00:32:59 Speaker_09
Two scientists in the back of the room roll their eyes. They've heard this same speech before, and they know what's coming next.
00:33:07 Speaker_06
Our goal now, as always, is to have a disregard for our current products. We want to make the products that we already have on shelves obsolete. That way our competitors can't keep up with us.
00:33:20 Speaker_06
If they're chasing what we've already done, then they'll be chasing a ghost.
00:33:25 Speaker_09
When the meeting breaks up, two scientists head into an unfinished office. Plywood is stacked high in one corner and sawdust covers the floors. This is a space the scientists use when they want to complain about management.
00:33:38 Speaker_09
And today, they really want to complain. This sucks. Ethan's always pushing us to do something new and different, but he never listens when we push back on him.
00:33:49 Speaker_09
Some of the products we create in the lab aren't scalable in the real world, but he'll go sell a prototype product to a customer without even thinking about scaling it.
00:33:57 Speaker_09
Yeah, that's exactly what just happened with the plant-based beef jerky we were working on for PepsiCo.
00:34:02 Speaker_09
We came up with a product and he went out and sold it before anyone figured out whether we had enough capacity to make it in bulk here at headquarters. Yeah, right.
00:34:11 Speaker_09
And we didn't have the capacity, so they ended up having to outsource it to a bunch of different factories. And that drove our costs up through the roof. One of the scientists angrily kicks up a cloud of sawdust.
00:34:22 Speaker_09
Yeah, Ethan's whole model is growth above all, but sometimes you gotta get the product right before you put it in stores. Remember how we rushed our new breakfast sausages into production? Yeah.
00:34:32 Speaker_09
They shrunk inside the packaging when they were put onto the store shelves. No one wanted to buy them. And now our sales are shrinking. I just read that Impossible Foods' sales are surging. We're falling behind.
00:34:44 Speaker_09
The scientist paused to look around at the dusty, disheveled headquarters. You know what? This is all Ethan's fault. The scientists dejectedly go back to their workstations.
00:34:55 Speaker_09
And as their dissatisfaction and Beyond Meat's debt continue to mount, Ethan concocts a new strategy. He's going to try and boost sales through an online marketing campaign.
00:35:08 Speaker_09
And the star of the campaign is a celebrity who knows all about breaking the internet. But when Kim Kardashian fries up a Beyond Burger, the company gets burned.
00:35:21 Speaker_09
On the next episode, a social media superstar cooks up a Beyond Burger, but will she take a bite? Plus, as consumers cut back on plant-based meats, both Impossible Foods and Beyond Meat will trim the corporate fad.
00:35:35 Speaker_09
And among those to go will be one of the company founders. If you like Business Wars, you can binge all episodes early and ad-free right now by joining Wondery Plus in the Wondery app or on Apple Podcasts.
00:35:53 Speaker_09
Prime members can listen ad-free on Amazon Music. Before you go, tell us about yourself by filling out a short survey at wondery.com slash survey. From Wondery, this is episode three of Beyond Meat versus Impossible Burger for Business Wars.
00:36:10 Speaker_09
A quick note about recreations you've been hearing. In most cases, we can't know exactly what was said, those scenes are dramatizations, but they're based on historical research.
00:36:18 Speaker_09
For additional information, check out a story on these companies by Tad Friend in The New Yorker, Can a Burger Help Solve Climate Change? And Jesse Newman in The Wall Street Journal, Beyond Meat's Very Real Problems. I'm your host, David Brown.
00:36:31 Speaker_09
Joseph Guinto wrote this story. Our producers are Emily Frost and Grant Rudder. Sound design by Josh Morales. Voice acting by Kieran Regan and Carrie Kavanaugh. Back checking by Gabrielle Drolet. Our senior producers are Karen Lowe and Dave Schilling.
00:36:44 Speaker_09
Our managing producer is Desi Blaylock. Our senior managing producer is Ryan Lohr. Our executive producers are Jenny Lauer-Beckman and Marshall Louis. Four wonder.
00:37:01 Speaker_00
In a quiet suburb, a community is shattered by the death of a beloved wife and mother. But this tragic loss of life quickly turns into something even darker. Her husband had tried to hire a hitman on the dark web to kill her.
00:37:16 Speaker_00
And she wasn't the only target. Because buried in the depths of the internet is The Kill List. A cache of chilling documents containing names, photos, addresses and specific instructions for people's murders.
00:37:31 Speaker_00
This podcast is the true story of how I ended up in a race against time to warn those whose lives were in danger. And it turns out, convincing a total stranger someone wants them dead is not easy.
00:37:44 Speaker_00
Follow Kill List on the Wandery app or wherever you get your podcasts. You can listen to Kill List and more Exhibit C true crime shows like Morbid early and at free right now by joining Wandery+.
00:37:55 Speaker_00
Check out Exhibit C in the Wandery app for all your true crime listening.