Benzinga | Nov 17, 2020 09:57PM EST

Ben & Jerry's Parent Heats Up Plant-Based Meat Race With Fivefold Sales Target

Ben and Jerry's parent Unilever Inc (NYSE:UN) (NYSE:UL) wants to pursue a five-fold increase in the sale of meat and dairy alternatives in the coming five-to-seven years, the Wall Street Journal reported Tuesday.

What Happened: The Anglo-Dutch multinational company said this week it is targeting $1.2 billion in sales of its vegan and dairy-free products.

Unilever will reportedly expand sales of its vegan and dairy-free line of products which include mayonnaise and ice cream.

The Vegetarian Butcher brand that is a supplier to Restaurant Brands International Inc's (NYSE:QSR) Burger King chain in Europe will also be expanded, as per the Journal.

The company is also looking to use algae as a source of protein to supply satisfy the needs of the global meat substitutes market, which is forecast to reach $23.81 billion by 2023.

Why It Matters: The London-headquartered multinational expects to sell $237 million (EUR 200 million) worth of plant-based substitutes in 2020, the Financial Times reported.

Hanneke Faber, president of Unilever's food division, told FT that the existing market was highly crowded but "we're up for it."

Multinationals like General Mills, Inc (NYSE:GIS) and Kellogg Company (NYSE:K) are increasingly venturing into the alternative meat space dominated by Impossible Foods Inc and Beyond Meat Inc (NASDAQ:BYND).

This week Beyond Meat launched two new versions of its burger, with one that is marketed as having 55% less saturated fat compared to an 80/20 ground beef blend.

Price Action: Unilever shares closed 1.35% lower at $59.93 on Tuesday.

Photo courtesy: Wikimedia