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ADM and Marfrig to launch veggie burger in US

Industry: Meat Substitutes
Current: Company Performance

Crop dealer Archer-Daniels-Midland Co. and meat tycoon Marfrig Global Foods SA plan to bring their vegetarian burger to the US market after launching it in Brazil in 2021
PlantPlus Foods, a joint venture between the two companies, will begin distributing its plant-based goods to restaurants in the US before the end of the year
Meat Inc. lowered their revenue forecast for the year as buyers turn to less expensive options such as chicken

Joint Venture Between Archer-Daniels-Midland Co and Marfrig Global Foods SA

After launching their vegetarian burger in Brazil in 2021, crop trader Archer-Daniels-Midland Co. and meat goliath Marfrig Global Foods SA intend to take their product to the US market.

PlantPlus Foods, a joint venture between the two companies, will begin distributing its plant-based goods to restaurants in the US before the end of the year. The Chicago-based company already has a collaboration with Burger King in Brazil where it sells at restaurants and retail stores.

The debut in the US comes at a time when American consumers are feeling the effects of inflation, which forced companies such as Beyond Meat Inc. to lower their revenue forecast for the year as buyers turn to less expensive options such as chicken. In September 2022, the company reported that plant-based protein is one of its areas that is growing by more than 10%. As the company adjusts to American tastes, the formula for the burger sold in the US will be different from the one sold in Brazil. The market value of meat substitutes in the US increased significantly in 2022 in comparison to that in 2021, according to GlobalData.

ADM and Marfrig, two of the largest suppliers of plant-based ingredients in the world, are strengthening their market position in the US. As a result, smaller companies selling plant-based meat are facing stiff competition, forcing them to focus more on Latin America and Europe. JBS SA, the largest supplier of meat globally, said in October 2022 that it will stop operating Planterra, a plant-based unit in the US, to concentrate on expanding markets in Brazil and Europe. Subsequently, Maple Leaf Foods Inc. of Canada decided to reduce the size of its plant-based section after determining that growth in demand will be lesser than previously anticipated.

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