Takeaway: In our very first SHORT deck on BYND in February 2020, we questioned the company's product's health benefits.

Editor's Note: Below is a brief excerpt from a complimentary research note written by our Consumables analysts Howard Penney and Daniel BiolsiCheck out our Sector Pro Product Consumables Pro

The $BYND Woes Continue  - AdobeStock 288980655 Editorial Use Only

Three consumers have filed a putative class action against alternative-meat manufacturer Beyond Meat, Inc., alleging the company misled consumers regarding the amount of protein in its products. Garcia v. Beyond Meat, Inc., No. 22-297 (S.D. Iowa, filed on September 9, 2022). 

The plaintiffs—who live in Colorado, Iowa, and Florida—allege they relied on representations regarding the percent daily value of protein in the products and labeling stating the amount of protein contained in them.

They assert that Beyond Meat products’ stated protein amount and percent daily value claims are false and misleading and that they chose to pay a premium price for the product based on the company’s representations. “Simply put, Defendant’s protein amount and/or protein DV% for the Products are a farce,” the plaintiffs assert in the complaint. “Defendant knowingly prepared the material on their website and product labels to misrepresent the true protein amount and/or protein DV% for the Products.” 

For alleged violations of state consumer fraud acts and the Magnuson-Moss Warranty Act, breach of express and implied warranty, and unjust enrichment, the plaintiffs seek class certification, declaratory judgment, damages, prejudgment interest, restitution, injunctive relief, attorneys’ fees, and expenses. 

The suit follows two other suits filed in May and June, which make similar claims. On top of this, Beyond Meat Inc.'s chief supply chain officer is stepping down at the end of the month, which does not bode well for the company trying to ramp up its supply chain.

Last Tuesday, the company suspended Doug Ramsey, its chief operating officer, following Mr. Ramsey's arrest in connection with what local authorities said was a fight in an Arkansas parking garage.

Mr. Ramsey was arrested after a physical altercation in which he allegedly bit a person's nose and threatened to kill him, according to a police report and county records.

The $BYND Woes Continue  - 2022 09 24 9 32 41  1