Why is this significant?
With so many QSRs releasing plantbased burgers and other products McDonald’s was the laggard. That’s now changed with the upcoming market trial of their PLT (Plant, Lettuce and Tomato) product in Canada. Given they have over 14,000 stores in the US alone adoption of a plantbased product will provide a massive sales lift to the category.
McDonald’s are trialing a plantbased burger in Canada but the big news is it’s only $6.49 for the PLT (Plant, Lettuce and Tomato) vs $6.09 CAD for the beef BLT. Price parity for plant vs beef edges even closer although there’s no bacon on the burger. It was inevitable that this’d happen but I’m surprised McDonald’s have gone with Beyond Meat given their relationship with Tyson Foods subsidiary Keystone Foods.
It’ll be interesting to see if it’s the standard Beyond product or a bespoke version. I’d have thought McDonald’s would want a point of difference, but we’ll wait and see on the 30th September. The 28 store trial should give a good indication whether or not the market potential is there for a Beyond based product.
Some people point out that it’s not necessarily a vegan or vegetarian product but that’s not the target market. The product is aimed at getting traction in the flexitarian segment and addressing the seemingly unstoppable plantbased trend. That’s where the market and the money lies!
My prediction for price parity is 2-3 years and it’ll be interesting to see if the price drops if McDonald’s goes system-wide in Canada and the US.