Major investment groups told food companies that meat is too risky. - Grist

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Meat bubble

Major investment groups told food companies that meat is too risky.

The Farm Animal Investment Risk & Return Initiative wrote to food titans like Kraft Heinz, Nestle, Unilever, Tesco, and Walmart to make the case that switching to vegetable proteins serves shareholder interests, Reuters reports. But it’s not just about risk: The group of investors, which has over $1 trillion under management, is also motivated by environmental and social concerns.

The financial argument is that the demand for meat is going to increase dramatically, driving up prices, as incomes rise and a new middle class starts eating its scrumptious flesh rations. Skyrocketing prices would be bad for companies that buy animal protein as an ingredient. It could even create what I like to call an exploding meat bubble, where meat prices spike and then crash as people switch to alternatives.

Nestle responded to the Reuters story to say the company was moving in that direction: “Our focus is to innovate great tasting solutions to encourage consumers to try them and over time make small, sustainable shifts towards a higher plant-based, more balanced diet.”

There’s a lot to consider when it comes to meat. We consider it in-depth, here.