Blue Apron Holdings beleaguered stock ended 35% higher on Tuesday after the meal-kit subscription service stated it would include Beyond Meat plant-based burgers in its menu, tapping on a rising marketplace for premium meat alternatives to draw new customers.
Overwhelmed by growing competition and falling sales, Blue Apron’s stock has fallen since its Wall Street debut in 2017. After Tuesday’s rally, it was still down 90% from the price in its initial public offering.
Blue Apron said its Signature Two-Serving Plan – a curated meal program subscription – would come with recipes using the Beyond Burger, a four-ounce patty with 20 grams of plant-based protein.
Beyond Meat shares ended 3.6% higher, and have elevated more than 580% since its public listing in May, making it 2019’s most profitable U.S. IPO by far. Its traders are betting the California firm will become the dominant participant in the nascent market for plant-based hamburgers, sausages, and different meat options, although it has yet to show a profit.
The company’s burger patties and sausages are on sale in supermarkets at costs higher than comparable meat products. Also, its food products are sold via Carl’s Jr, Del Taco, and different restaurants.
“We know a rising number of clients are excited about plant-based proteins, whether or not as an alternative to meat, a desire to try a brand new ingredient, or an opportunity to make more sustainable food selections,” Blue Apron Chief Executive Linda Kozlowski stated in an announcement.
U.S. retail sales of plant-based meals grew 11% in the past 12 months, bringing the overall market worth to $4.5 billion, based on new data from Good Food Institute and trade group Plant-Based Meals Association.