Beyond Meat Has Lost a Major Potential Customer

Los Angeles-based producer of plant-based meat substitutes Beyond Meat has lost a major potential fast food customer this week.

Shares of the stock were in the red after Wall Street learned that Yum Brands’ (YUM) Taco Bell has ruled out adding the company’s products to its menu.

An executive said the company would not be offering Beyond Meat’s fake meat products to its customers nor would it offer Impossible Foods’s products either.

“We’ve met with Beyond, we’ve met with Impossible — our head of innovation knows everybody, and they all know her,” said Julie Felss Masino, Taco Bell’s president of North American operations to CNBC. “But I think what we’re proud of is that we’ve been doing vegetarian for 57 years.”

Rival Del Taco recently announced that it will be rolling out two new vegetarian options after the success of their Beyond Meat tacos: the Beyond 8 Layer Burrito and the Epic Beyond Cali Burrito.

Del Taco said that its Beyond Meat tacos were one of the best-selling new products in the chain’s history. Since its nationwide launch in April, Del Taco has sold about 2 million of the meat-free item.

“The team did a great job developing a proprietary and unique flavor profile that tastes incredibly similar to our current ground beef, allowing us to broaden its appeal to not only attract vegans and vegetarians but also those looking for ‘better-for-you’ options or to reduce red meat without sacrificing flavor,” said CEO John Cappasola after the Beyond Taco launch in late April, according to Business Insider.

Shares of Beyond Meat only made their debut in May and have hit as high as over $200 a share already.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.