Consumer Ethics Alter Corporate Plans: Investing in Veganism
October 30, 2018

Consumer Ethics Alter Corporate Plans: Investing in Veganism

by lovemevegan

With veganism on the rise across the Western world, meat companies are falling over themselves to get a piece of the cruelty-free pie. The public is beginning to see that animal products are not only cruel but are also unsustainable and unhealthy, which is a cause for concern for companies with profits at risk. Demand for plant-based and vegan products is growing at an exponential rate and companies must meet the changing dietary preferences of consumers or risk loss of revenue.
Some of the largest meat producers are investing heavily in plant protein alternatives. In 2018, Maple Leaf acquired an established meat company called Field Roast. The acquisition of this vegan company fits well into Maple Leaf’s goal of becoming the most sustainable protein company on Earth. Tyson, the world’s second-largest producer of chicken, beef and pork, has a 5% ownership of the wildly popular company Beyond Meat. Even Hormel Foods, the makers of SPAM, is looking to diversify and invest in plant-based protein ventures.
The market extends far beyond just mock meats as vegan dairy alternatives are causing quite the disruption. General Mills has invested $40 million in additional funding for Kite Hill, a company that produces artisan vegan yogurt and cheese from almonds. This comes after a study released by Cargill citing that 50% of the milk sold in the US is non-dairy, indicating that the market for vegan products extends far beyond the vegan community itself.
In this economy, consumer demand influences corporate decision making. The only reason companies are investing in meat alternative is because consumers have demanded it. Similarly, if there was intense consumer demand for exotic meat like ostrich, it is likely these companies would invest in this space too. It is not as though these corporations have ethics of their own, they are simply reflecting our shifting societal sentiments.
These companies are not leading with a strong sense of corporate responsibility, but rather reacting to the demands of consumers. If they do not invest in healthy, sustainable alternatives to animal protein, they will not survive in an economy increasingly based on ethics. These companies have had a taste of success in the plant-based protein arena, and it has them hungry for more.
Beyond Meat has received several rounds of private investment, but the company may be going public. According to inside sources, Beyond Meat is working with Credit Suisse, J.P. Morgan and Goldman Sachs to assist in their initial public offering. This would make Beyond Meat the first vegan company to sell shares on the public stock market.
Vegan meat and dairy alternatives are quickly growing and have already permeated the mainstream. Beyond Meat made a very strategic move in their refusal to sell their product unless it is marketed in the meat department. By housing their product beside real meat, they position themselves to disrupt the status quo of protein. Although they create vegan products, Beyond Meat and many other companies are not trying to appeal to vegans. They know that to succeed, they must reach the masses.
Would you put your money where your mouth is and invest in vegan companies like Beyond Meat? Or are you content simply purchasing these products to support these brands? Whatever the case may be, the interest and investment into animal-free animal products will only continue to grow. A time will come when we will have to ask ourselves: with such incredible alternatives to animal products, how can we justify the health, environmental and ethical dilemmas associated with the “real” thing?

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