Maple Leaf’s sober second run at meatless meat

On Wednesday afternoon at the headquarters for one of Canada’s top meat packers, chef Samantha Lazuric fried textured soy protein in a skillet over high heat.

Ms. Lazuric – the head of culinary innovation at Maple Leaf Foods Inc. MFI-T – added peppers and onions to the mixture, removed the pan from the stove and poured its contents over a kale salad tossed in chipotle dressing.

The lunch – which also included meat-free baloney sandwiches and plant-based Bolognese lasagna – celebrated the relaunch of the popular Yves Veggie Cuisine, a 40-year-old Canadian brand that Maple Leaf purchased late last year.

It is the Canadian food giant’s latest bet on the fraught plant-based protein market, a tumultuous arena where Maple Leaf has spent big and struggled to stay profitable.

And these challenges are not a thing of the past. On Tuesday evening – the evening before the Yves launch event – Maple Leaf announced that it would be closing plant-based meat-processing plants in Seattle and Turners Falls, Mass. Declining sales volumes meant that the manufacturing lines were not at capacity, said the company press release.

But this is not evidence that Maple Leaf is divesting from plant-based protein, said Adam Grogan, president and chief operating officer of Maple Leaf Foods, adding that the Yves launch and plant closings both represent the company’s commitment to plant-based proteins.

“We believe fundamentally that having sustainable protein for the long haul is going to be an arena that we need.”

Over the years, Maple Leaf Foods joined the chorus of investors pouring money into the plant-based meat market. The company purchased the number one plant-based hot-dog manufacturer in 2017 for $140-million and another vegan processor, Field Roast Grain Meat Co., the same year for US$120-million. It invested more than $400-million in two plant-based manufacturing plants in Indiana starting in 2019.

It was a bid to stay ahead of what had become a competitive market. The initial public offering for alternative protein poster child Beyond Meat Inc. BYND-Q was the best for a U.S. company in nine years. In Canada, A&W, Tim Hortons, Burger King and Subway added plant-based proteins to their menus.

But the hype faded. Consumers did not trade animal protein for what turned out to be unfamiliar, pricier products. Six years after hitting the market, Beyond Meat hit penny-stock territory, sales for plant-based meats steadily fell from highs in 2021, and Maple Leaf’s division consistently underperformed.

In February, 2024, after reporting another disappointing quarter for the plant-based division, Maple Leaf announced that it would be combining the plant-based division with the meat division.

Today, however, Maple Leaf believes there is a strong future for alternative meats, said Mr. Grogan, adding that consumer interest in health and wellness is behind long-term growth in protein demand.

“The downturn of the category – that’s a reality. But over the long term we believe that a number of people are having a strong desire for more protein, not less.”

And Maple Leaf is in the right position to do this, he said. He does not see plant-based meats as a substitute for traditional animal-based proteins. Maple Leaf’s mission is not to tell consumers what they should eat, he said. It is to offer variety.

While the company is closing two plants in the U.S., it will be investing in a plant-based protein “centre of excellence” in Indiana, where it already has a 100-per-cent vegan facility. This economized centre and the rollout of the revamped Yves product line will meet the long-term demands for more protein, and a greater variety of options, said Mr. Grogan.

“Plant-based protein has been through an incredible cycle. It’s been on its way up. It’s had some challenges. It’s corrected itself. We’re seeing disruption everywhere,” he said.

“But our view is that over the long haul, people are going to want more protein, not less, and they’re going to want more plant-based protein, not less.”