Plant-based meat purchases up over 200%: report

Amid coronavirus plant-based meat purchases have skyrocketed, while previous reports show increasing meat shortages in the U.S. Yahoo Finance's Myles Udland, Dan Roberts, and Melody Hahm discuss the latest Nielsen report.

Video Transcript

MYLES UDLAND: But let's switch gears and talk a little bit about some of our shopping habits and how they've changed at the grocery store in the time of coronavirus. We discussed that terrible retail sales report earlier. Well, there's no specific break out in that data for plant-based meat products, and apparently, according to data from Nielsen, they're up about 250% during this lockdown.

And Dan and Melody, I know we've both talked a lot about plant-based meats, whether it's real, what the trend is like, and Melody, I guess, like, on some level, if it's available in the grocery store, people are going to buy it because they're buying literally anything that's on the shelves.

But I am very skeptical of this notion that maybe it's a luxury item, like a lifestyle item. That kind of decision you're making for plant-based meats, is that something that gains momentum in a time like this, or does it ultimately prove to be a fad? I think the industry says it's real, but my skepticism, I think, is well established at this point.

MELODY HAHM: I echo your skepticism, actually, on this point. And this Nielsen data, of course, a lot of it is accurate. I think plant-based meat is the largest gainer during this time, but of course, dried beans, canned meat, kidney beans, chickpeas also on the rise. And kind of to your bigger point, I don't think those will continue to be popular, right, post-pandemic.

So it's just kind of out of necessity. Oftentimes when you don't see the pork shoulder or the pork belly or the piece of steak that you want, you're going to have to settle for something like this. And we have even seen with fast food restaurants, the likes of Wendy's have run out of hamburgers in certain locations because the supply chain has been so messed up and upended during this time.

So yeah, this is interesting. Donuts, cupcakes, dessert platters showed the biggest declines during the nine weeks ending May 2nd, which is contradicting some of Brian Sozzi's reporting on Twinkie sales going up. So who knows? I think this is really just kind of a fleeting phenomenon.

DAN ROBERTS: Yeah, guys, I'm more of a fan of this stuff than you two are, although I tend to agree that, you know, in general, it's been a gag. I mean, it's a novelty. I think a lot of people get it a couple of times to try it. We've cooked some Beyond patties on the grill, and it's fun, but I would still prefer a real burger.

Now that said, I think if the numbers are up for this stuff during quarantine, it's hard for me to ascribe it to quarantine. I think probably, A, let's remember that we're approaching spring and summer. I mean, we're sitting here inside today, and Myles and I are on the east coast and it's 80 degrees outside right now. So people are starting to get burgers for the grill again. Maybe that's part of it.

But also, you know, the meat shortages haven't really hit until the last few weeks. So it's hard for me to think that a bump for plant-based meat during the coronavirus lockdown can all be put on the meat shortage.

I would imagine that probably people who are buying are either the same kind of people who were buying before at the start of this explosion in popularity who are trying it for the first time, or it's people who do like it and we're going to be buying it anyway. It's hard for me to think this is a quarantine bump. But we'll see. I think all three of us agree that I don't know if the fake meat boom is going to last for many more years.

MYLES UDLAND: Some skepticism there. You know, it's funny. You mentioned, like, that sweet sales were down. I mean, I've had a hard time getting Oreos. So I don't know if there's an Oreo supply chain issue in addition to a meat factory supply chain issue that I don't know about. Certainly baking products, your flours, yeast has been impossible to get. All these sweeter items, comfort items, I guess, are in short supply.

MELODY HAHM: Yeah, and it's also interesting because a company like Impossible Foods initially, as you recall, they really flooded the zone on the kind of fast food side and even the gourmet restaurants, which, of course, are not open during this time.

And now Impossible has stealthily been entering many grocery markets. So perhaps to Dan's point, it's just the intrigue, the initial curiosity, saying, hey, if there is a time to test out a new recipe now when we have all of this extra time, why not at this moment?

So yeah, it's-- I mean, even with the Oreo thing, I go to Trader Joe's all the time here and all of the cookies tend to be sold out first. So people are still snacking on that stuff. It's just a matter of yeah, this data doesn't reflect that necessarily.

MYLES UDLAND: Yeah. I would never go into a Trader Joe's right now if I didn't have to, but I could really go for the raspberry-- the long cookies, you know, that have the white--

MELODY HAHM: Oh, those are delicious. I love the mini mouthful mint cookies with, like, the Oreo sandwich.

DAN ROBERTS: Yep, guys, quick anecdote. During this timeline, the local fancy grocery store has often been out of burgers, but they have the Beyond patty. So at least locally, I'm not seeing the shortage yet.