USA – A federal jury in Massachusetts has ruled that Beyond Meat must pay Vegadelphia Foods US$38.9 million after determining the plant-based producer infringed a trademark tied to the phrase “Where Great Taste Is Plant-Based.”
The panel concluded that Beyond Meat’s use of the slogans “Great Taste, Plant-Based” and “Plant-Based, Great Taste” in marketing a meat-free sausage breakfast sandwich was similar enough to Vegadelphia’s tagline to mislead shoppers, prompting Monday’s decision.
A spokesperson for Beyond Meat said the company disagrees with the outcome and plans to challenge the ruling through the appeals process, signaling what is likely to be a prolonged legal dispute.
Vegadelphia’s lawyer Ben Wagner of Troutman Pepper Locke said the larger competitor adopted a nearly identical slogan despite knowing about the registered trademark, arguing this move disrupted Vegadelphia’s chance to grow during a period when demand for plant-based products was at its peak.
Vegadelphia, which produces plant-based beef and chicken alternatives, launched its operations in 2004 and secured federal trademark protection for its slogan in 2015.
The company first brought the lawsuit against Beyond Meat and Dunkin’ in a Florida federal court in 2022 over the slogans used to market Dunkin’s Beyond Sausage sandwich, although the case was later shifted to Boston.
Dunkin’ resolved its portion of the lawsuit last year, leaving Beyond Meat to defend its position that its marketing language would not confuse consumers and simply described the qualities of its plant-based items.
The matter is filed as Vegadelphia Foods v. Beyond Meat Inc in the U.S. District Court for the District of Massachusetts under case number 1:23-cv-10690.
Financial strain deepens
The ruling comes as Beyond Meat faces worsening financial pressure, as shown in its delayed third-quarter results released in November.
The company reported a net loss of US$110.7 million, or US$1.44 per share, for the quarter, more than triple the US$26.6 million (US$0.41 per share) loss posted during the same period in 2024.
Losses from operations widened to US$112.3 million, showing an operating margin of negative 160 percent, compared to a US$30.9 million loss and a negative 38.2 percent margin in the third quarter of the previous year.
Beyond Meat said the delay in issuing the report was caused by the need to complete several internal assessments that pushed the release past its earlier target.
Net revenue dropped 13.3 percent year-on-year to US$70.2 million, and gross profit declined to US$7.2 million from US$14.3 million in the same quarter last year.
Adjusted EBITDA also showed a more profound loss of US$21.6 million, equal to a negative 30.8 percent of net revenue, compared to a US$19.8 million loss or a negative 24.4 percent ratio in the third quarter of 2024.
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