(Bloomberg) -- Crop trader Archer-Daniels-Midland Co. and meat giant Marfrig Global Foods SA plan to expand sales of their veggie burger to the US market after launching in Brazil last year.
PlantPlus Foods, a joint venture between the two companies, will start selling its plant-based products in US restaurants before the end of the year, a spokeswoman for the company confirmed. The Chicago-based firm already sells at retailers and food services outlets in Brazil, where it has a partnership with Burger King.
The US launch comes just as inflation is hitting the pockets of American consumers, prompting the likes of Beyond Meat Inc. to slash its revenue outlook for the full year as shoppers turn to cheaper options such as chicken. Still, ADM Chief Executive Officer Juan Luciano said last month that plant-based protein is an area experiencing growth of more than 10% for the company.
The recipe for the US burger will be different than the one marketed in Brazil as the company adapts to American tastes, the spokeswoman said.
ADM, one of the world’s largest producers of plant-based ingredients, and Marfrig are betting on plant-based products in the US even as competitors shrink. JBS SA, the world’s largest meat supplier, announced this month that it will discontinue operations at its US plant-based unit Planterra to focus on growing markets in Brazil and Europe.
Canada’s Maple Leaf Foods Inc. recently decided to reduce the size of its plant-based segment after a review found demand will grow less than industry experts initially expected. Deloitte Consulting has said slowing sales may be the result of market saturation.
Launched in 2020, PlantPlus Foods is 70% owned by Marfrig and 30% by ADM. Since then, it acquired Canadian vegan food manufacturer Sol Cuisine and also Drink Eat Well LLC., the producer of Hilary’s allergen-friendly plant-based products.
Leticia Goncalves, ADM’s president of global specialty ingredients, last year said that PlantPlus wasn’t going after existing markets, and it believed the category would continue to growing double digits.
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