WHAT’S BEING CLAIMED:
- On Wednesday, Dunkin’ and plant-based meat seller Beyond Meat have combined forces and are initially offering the limited-time Beyond Sausage Breakfast Sandwich at its U.S. restaurants.
- While Dunkin’ Brands CEO Hoffman maintains that the partnership will cause sales to spike up, Beyond Meat founder Ethan Brown maintains that their company is fully capable of meeting the demands of Dunkin’.
- Beyond Meat products are set to be available in more than 9,400 Dunkin ‘U.S. locations.
Donut shop Dunkin’-turned-iced-espresso chain announced that it has forged a partnership with plant-based meat supplier Beyond Meat on Wednesday.
For a limited time on Wednesday, the Beyond Sausage Breakfast Sandwich which features Beyond Meat’s faux sausage and Dunkin’s (DNKN) initial product with Beyond Meat (BYND) will make its debut at its Manhattan restaurants.
“It’s a damn good product,” says CEO David Hoffmann of Dunkin’ Brands. He also tells Yahoo Finance that the move will definitely “move the sales needle” for the company.
Likewise, CEO and Beyond Meat founder Ethan Brown also tells Yahoo Finance that operations-wise, their company is sufficiently equipped to meet the increased demand from a national chain such as Dunkin.
However, the announcement doesn’t really come as a surprise. In a May 3 interview with Yahoo Finance, Hoffman practically telegraphed the move by mentioning that he was in the process of partnering with an unnamed plant-based protein player.
Furthermore, due to the successful initial public offering of Beyond Meat in May, consumer interest in plant-based meat has become the rage. In their move to cash in on the craze, several fast-food chains like Restaurant Brands (QSR), White Castle and Red Robin collaborated with Beyond Meat competitor Impossible Foods for limited-time sandwich offerings.
So far, consumer response, were reportedly strong, to Impossible Foods products.
According to the Plant Based Foods Association, the plant-based meat category alone is presently worth over $800M of which sales in the past year have reached 10 percent. Sales of refrigerated plant-based meat in the last year have leapt to 37% against a 2% growth for the traditional meat market.
On the whole, the combination of the two companies is advantageous for both.
For Dunkin, consumer perception of the brand can be changed to a cooler and younger one. Additionally, being strong initial sellers, Beyond Meat products are set to be unveiled in Dunkin’s 9,400-plus U.S. locations.
While on the other hand, Beyond Meat will have its name in an average American distribution path instead of just through the refrigerated shelves at Whole Foods. If the company will successfully supply for Dunkin’, it’s possible that they can provide for bigger chains like McDonald’s. And if they do, then they can manage being on the national stage which investors in Beyond Meat are betting on. Since IPO day, the stock is up to 170%.