TLDR
- Beyond Meat was ordered to pay $38.9 million to Vegadelphia Foods for trademark infringement over the slogan “Great Taste, Plant-Based” used in a 2019 Dunkin’ commercial featuring Snoop Dogg.
- Vegadelphia, which trademarked “Where Great Taste Is Plant-Based” in 2015, claimed the infringement destroyed potential business deals worth up to $100 million.
- The jury awarded $23.5 million in actual damages and $15.4 million in disgorged profits, more than half of Beyond Meat’s Q3 revenue.
- Beyond Meat stock jumped nearly 20% on Wednesday before Thanksgiving, reaching $0.96 amid heavy trading volume of over 61 million shares.
- The company plans to appeal the verdict while dealing with a 14% sales decline in 2024 and multiple rounds of layoffs.
Beyond Meat faces a fresh legal setback worth millions.
A Massachusetts jury ruled the plant-based meat company must pay Vegadelphia Foods $38.9 million for trademark infringement. The case centers on slogans used in a 2019 Dunkin’ advertisement.
The disputed phrases “Great Taste, Plant-Based” and “Plant-Based, Great Taste” appeared in a commercial for the Beyond Sausage sandwich. The ad featured rapper Snoop Dogg and ran after Beyond Meat partnered with Dunkin’ that year.
Vegadelphia trademarked “Where Great Taste Is Plant-Based” in 2015. The company, which sells plant-based beef and chicken, predates Beyond Meat by five years.
The jury awarded $23.5 million in actual damages and $15.4 million in disgorged profits. This amount exceeds half of Beyond Meat’s third-quarter revenue.
Legal Claims and Counter-Arguments
Vegadelphia claimed the trademark violation ruined expansion talks with food industry executives. Those discussions could have valued the company at $100 million within several years.
“Beyond Meat’s flooding of the market with a virtually identical slogan, well after becoming aware of Vegadelphia’s registered trademark rights, cost its competitor Vegadelphia the perfect expansion opportunity,” said Vegadelphia attorney Ben Wagner.
Beyond Meat argued its slogans wouldn’t confuse consumers. The company claimed the phrases “fairly and accurately describe qualities” of its plant-based products.
Beyond Meat’s legal team said the company reviewed Vegadelphia’s trademark and decided the phrases were different enough. The jury disagreed after seven days of testimony in Boston.
Dunkin’ settled with Vegadelphia in 2023. The lawsuit started in Florida in 2022 before moving to Massachusetts federal court.
Stock Movement and Company Challenges
Beyond Meat stock climbed almost 20% intraday on Wednesday. Trading pulled back to $0.96 by late morning with heavy volume exceeding 61 million shares.
The market closed early for Thanksgiving. Traders noted seasonal interest in plant-based meat products drove the movement.
Technical analysts identified resistance at $1.03 with potential targets reaching $1.18. The stock has hit all-time lows this year and became a meme stock at various points.
Beyond Meat’s sales dropped 14% in the first nine months of 2024 compared to the same period last year. The company conducted multiple layoffs and shut down its China operations.
The legal verdict adds to a growing list of battles for Beyond Meat. The company settled a $7.5 million class-action lawsuit in 2024 over nutritional benefit claims.
A judge dismissed an investor class-action lawsuit earlier this year about manufacturing capacity disclosures. Beyond Meat won a separate dispute with a former co-manufacturer over contract termination.
A law firm is investigating the company for potential federal securities law violations. Beyond Meat plans to appeal the Vegadelphia verdict.
The company secured debt restructuring and raised $100 million in debt financing this year. New partnerships with Walmart, Erewhon, and BrewDog expanded its retail presence.
CEO Ethan Brown told analysts the company is “closing out the year with a much improved balance sheet” and “genuine optimism” about the future. The damages from Wednesday’s ruling represent more than what Vegadelphia initially requested from the jury.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
