Kroger, the largest supermarket chain in the US, announced a co-branding partnership with plant-based meat producer Impossible Foods to develop meat alternatives for Kroger’s private label business. As a result, more customers, particularly those who are price-sensitive, may be introduced to meat substitutes.

Upon announcement of this deal, plant-based meat player Beyond Meat’s share price fell more than 7% in afternoon trading. Robert Moskow, an analyst at Credit Suisse noted that the partnership will raise competition for Beyond Meat, as this indicates the willingness of Impossible Foods to “margin down” into co-branded private label products to increase the reach of its products. Beyond Meat has also lost 68% of its stock value in the last 12 months, with its market value declining to USD 2.72 billion.