The discounter Lidl has really turned into an amazing supermarket, willing to try new trends in a predominantly conservative country like Germany.
A few weeks ago, Lidl had cricket snacks (chilli and BBQ flavor) on offer. At a kg-price of 124€, and a fish-feed aftertaste, I do not think this product will fly with Lidl’s average shoppers.
This week, a meat-less burger was on sale. Following the trends of Beyond Meat and Impossible Foods, Lidl offered the “Next Level Burger”. What may give rise to questions is the fact that the word “meat” is stated on the front, which can be perceived as misleading, especially since this is not the company name. At an offer price of 11€/kg, this plant-based, vegan burger is still 30% more expensive than the 7.60€/kg beef burger next to it.
Image: Carmen Diaz-Amigo
Are Meat-Alternative Companies The Next Level For Investors?
The general stock market is very volatile at present, the real-estate bubble is growing again, and investors look for safe havens. The cannabis industry and the food industry seem to be resilient segments – but are they? Clearly, the unicorn IPO of Beyond Meat (BYND) has shown that investors are willing to pour money into these companies. Will they get a return? Certainly, Beyond Meat was one of the first of meat-alternative companies that inspired the imagination of investors, painting the picture of a meat-free world. Looking at sale price of meat alternatives, those products are at least 30% more expensive than meat. The question is how many consumers (or more precisely: how many flexitarians) are willing to pay the extra for a product that, only in some aspects, resembles the taste and flavor of meat products (see below).
Secondly, nutritional experts question the healthiness of the products due to some components of the burger. In addition, there are infrastructural challenges for these companies, plus the fact that an increasing number of these companies bring similar products to the market, competing for the same space, which will impact on the margins to be gained. And then, in the meat-alternatives as well as in the cannabis markets, there are some unlikely contenders emerging that have the potential to disrupt these relatively young markets. This will, in turn, impact adjacent segments like food testing laboratories and technology providers. But let’s take a closer look at the next level burger sold at Lidl this week.
What is the Next level Burger made of exactly?
On the front, its states: with vegetables, pea-, soy- and wheat-protein. On the back it reveals that the major component consumers pay for is… you might have guessed… water. This is not surprising at all, since also meat patties contain a high amount of water, but since this water is part of the meat itself, it does not need to be declared.
The second ingredient are champignons. Champignons are well known as a significant source of the – all natural – flavor enhancer mono-sodium glutamate (MSG). So this is really what gives taste to the vegan patties, plus the yeast extract, which appears later in the ingredient list. Yeast extract (to those of us who have lived in Britain, it is well known as Marmite), is another significant source of monosodium glutamate.
The third ingredient listed (after water and champions) are antioxidants. This is followed by refined coconut fat. Refined coconut fat is not exactly known to be the healthiest choice, really, but also present in both, the Impossible Burger and the Beyond Burger. And since it is listed before the 9.2% pea protein, it means that the level of refined, unhealthy coconut fat is at least equal, but likely higher than 9.2%. After the pea protein, wheat and soya are listed as protein sources. That is followed by vegetables (onions and chicoree), which are in turn followed by spices and methylcellulose. Methylcellulose is used in food as thickener and emulsifier. It is also used in the medical field to treat constipation. In the quantity present in the patty, it’s is not likely to have the same effect.
Then follow salt, flavours, pea starch, yeast extract. Yeast extract, as mentioned before, are, jointly with the champignons, the major source or natural monosodium glutamate. Next are bamboo fibres and beet root concentrate. Beet root is used to imitate the meat colour. Then follow preservatives potassium sorbate and sodiumactetate. If you buy fresh meat, it does not contain preservatives. Some preservatives, like benzoic acid, were in the headlines for causing pseudo allergies in some individuals. Last in the list is smoke flavour.
Ingredient Comparison
The Next Level Burger contains:
Water, Champignons, refined coconut fat, 9.2% pea protein, 5.6% wheat protein, 4% vegetables (onions, Chicoree), Canola oil, 3.8% Soy protein and soymeal, spices, methylcellulose, salt, flavours, pea starch, yeast extract, bamboo fibre, beet root, preservatives: potassium sorbate Sodium actetate, smoke flavors.
The Impossible Burger contains:
Water, Soy Protein Concentrate, Coconut Oil, Sunflower Oil, Natural Flavors, 2% or less of: Potato Protein, Methylcellulose, Yeast Extract, Cultured Dextrose, Food Starch Modified, Soy Leghemoglobin, Salt, Soy Protein Isolate, Mixed Tocopherols (Vitamin E), Zinc Gluconate, Thiamine Hydrochloride (Vitamin B1), Sodium Ascorbate (Vitamin C), Niacin, Pyridoxine Hydrochloride (Vitamin B6), Riboflavin (Vitamin B2), Vitamin B12.
The Beyond Meat Burger Contains:
Water, Pea Protein Isolate, Expeller-Pressed Canola Oil, Refined Coconut Oil, Contains 2% or less of the following: Cellulose from Bamboo, Methylcellulose, Potato Starch, Natural Flavor, Maltodextrin, Yeast Extract, Salt, Sunflower Oil, Vegetable Glycerin, Dried Yeast, Gum Arabic, Citrus Extract (to protect quality), Ascorbic Acid (to maintain color), Beet Juice Extract (for color), Acetic Acid, Succinic Acid, Modified Food Starch, Annatto (for color).
The ingredients of Next Level Burger, Beyond Meat and Impossible Burger are not that different, except that they differ in the major protein source. Proteins from champignons in Next Level Burger, pea protein in the Beyond Meat Burger and Soy protein in the next level burger. The only burger that “bleeds” is the Impossible Burger though, by virtue of the soy leghemoglobin.
And the taste?
We wanted to try the taste of it, and the plant-based patties ended on our table top grill. Unlike the Impossible Burger, the Next Level Burger does not bleed, and the red colour comes from beet root concentrate. The appearance of the burger is meat-like and is likely to appeal to flexitarians. Also the texture is not dissimilar to well-known fast food chain patties. The flavor is close to meat, with a clear note of cereals. So overall, a positive experience. And the burger kept us full for a fairly long time.
Author: Carmen Diaz-Amigo
It is likely that the prices will come down to at least to those of conventional meat to make it more attractive to flexitarians, but potentially less apealing for investors. And I hope Lidl keeps positively surprising its shoppers with this kind of offers.
