Legal issues and battles in Meatless Business

    The meteoric rise of plant-based meat companies has shaken up the meat industry in recent years, but no industry can undergo such radical changes without some uneven steps along the way. In the arena of plant-based meat, many of these uneven steps have come in the form of legal battles. Several lawsuits have arisen involving the companies at the forefront of this emergent industry. Understanding some of these legal battles paints a clearer picture of the events associated with rapid changes and the popular term “disruptors” of the industry

Beyond Meat vs Don Lee Farms and other players in the game

        One of the biggest names in plant-based meat is the fast-growing Beyond Meat, which has gone from a promising startup to a widely known name in a matter of a few years. A name without the same degree of universal recognition is their former partner Don Lee Farms. Don Lee Farms used to be a major supplier for meatless products distributed under Beyond Meat, but Beyond Meat ultimately ended their supply contract early, citing concerns about health and safety in the products they received from the supplier. Don Lee Farms ultimately sued in 2019, claiming that Beyond Meat’s claims of food safety were unsubstantiated and that the company ultimately stole trade secrets from their supplier and shared them with other manufacturers. This suit has proved to be a thorn in Beyond Meat’s side, with a motion to dismiss claims denied and the legal battle yet unresolved.

        Beyond Meat’s™ biggest competitor, Impossible Foods™ likewise ended up embroiled in a major lawsuit of its own. Unlike the troubles for Beyond Meat, however, Impossible was the instigator of their dispute, suing Nestle for marketing plan- based patties as “Incredible Burgers” in Europe. Impossible has ended up on top of their conflict, with courts ordering Nestle to rebrand their products to avoid confusion over the similarity to Impossible’s trademark. Another interesting legal battle that involves the Impossible name is a class-action taken against Burger King thanks to a customer unhappy with the fast-food chain cooking Impossible burgers on grills shared with traditional meat. However, the argument stands on somewhat weak ground, as Burger King never claimed otherwise and even established the potential for shared equipment on their website.

Impossible Burger™ vs Incredible Burger™ photo by Johnny Zubac

Product naming is still an issue in courts

        Not all legal troubles in the plant-based meat industry are specific to individual companies. One setback in the United States has been a resistance to the labeling of meatless products as “burgers” or comparable terms typically associated with meat, which has resulted in state governments attempting or instituting bans on such product labels. The Plant-Based Foods Association sued the state of Mississippi over such a law last summer. They ultimately dropped the lawsuit in the fall after a victory on an agricultural regulation level where revised state regulations allowed them to continue selling plant-based products with labels like “burger.”

        Considering how many conflicts have already emerged within the few years since the rise in plant-based meat’s popularity, there is no doubt that more lawsuits are to come. A vegan consumer, for example, sued Burger King™ last year over grilling a meatless patty on the same grill meat based patties were grilled on. With so many meatless startups in the scuffle and industry of traditional meat that wants to protect its own interest, it’s simply impossible to avoid legal battles. However, one thing is already clear-no matter who ends up on top, plant-based meats are not going away any time soon. The industry has truly been changed.

Video Courtesy of CBSN

Takeaway

Sudden expansion of plant-based food startups and associated dietary trends can’t go unnoticed by legal professionals and those who in one way or the other found themselves, in their view of events, damaged in the process of these rapid changes. This is normal for any industry in free market economies. One thing that is beneficial for both sides is the functional legal system which then can decide in favour of those who feel damaged. I believe that these legal battles in food industry sector won’t be less frequent in the foreseeable future.