Costco will sell a new plant-based burger from a company that has a complicated history with Beyond Meat

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Costco will sell a new plant-based burger from a company that has a complicated history with Beyond Meat

Better than beef burger

Don Lee Farms

The Better Than Beef Burger will be sold in some Costco stores soon.

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  • Costco stores will start selling a burger made entirely from plants in the next three weeks, a spokesperson for the plant-based "meat" company Don Lee Farms, confirmed in an email.
  • The warehouse retailer has partnered with Don Lee Farms to bring the Better Than Beef Burger to Costco stores in Alaska, Idaho, Montana, Oregon, Utah and Washington. The burger will also be sold in H-E-B stores.
  • Don Lee Farms is currently in litigation with Beyond Meat in regards to a past partnership between the two companies.
  • Visit Business Insider's homepage for more stories.

Costco might have a hefty supply of meat and poultry.

But even the warehouse store is cashing in on the plant-based "meat" craze sweeping the nation.

Costco has partnered with Don Lee Farms to sell the Better Than Beef Burger in its stores in the next three weeks, a press release said on Wednesday. The Better Than Beef Burger is made from plants and will also be sold at some H-E-B stores.

Read more: 'Costco relaxes my soul': 6 die-hard Costco fanatics explain why they love the warehouse store so much

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Don Lee Farms is currently in litigation with Beyond Meat. The Beyond Burger was manufactured by Don Lee Farms per a supply agreement between the two companies in 2016. Beyond Meat moved to new manufacturers in 2017 and Don Lee Farms sued the company on claims of breach of contract, negligent representation, and trade secret theft.

Beyond countersued on claims of breach of contract, Barrons reported.

"We are looking forward to getting the facts surrounding the Beyond Meat's breach of contract and fraud lawsuit out at trial, which is set for May," a Don Lee Farms spokesperson said to Business Insider.

A representative for Beyond Meat did not return Business Insider's request for comment on the suits.

Costco produces more than 240 million pounds of ground beef, meatballs and hot dogs at two meat plants, according to a company magazine. The company has sold veggie burgers under its in-house Kirkland Signature brand, though they were recalled in April for possibly containing pieces of metal. Costco rolled out a plant-based burger from Don Lee last year in select Costco stores in 15 countries.

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Costco raw plant-based better than beef burger

Don Lee Farms

The Better Than Beef Burger will be sold in Costco stores in Alaska, Idaho, Montana, Oregon, Utah and Washington.

"Our new Better Than Beef Burger delivers on the experience and satisfaction of beef's aroma, texture, flavor and juiciness with the lowest calories, fat and saturated fat on the market," Danny Goodman, head of development for Don Lee Farms, said in a press release. "We can't wait to get this burger in more hands as we expand our brand into retail markets."

The Impossible Burger was launched in grocery stores last week at all 27 locations of Gelson's Markets, a Los Angeles-based grocery chain, following a hefty demand for the meatless burger that surged to the point of shortages in some partner restaurants. Impossible Foods also rolled out the Impossible Burger in 100 Wegmans locations and two Fairway Markets in the northeast US on Thursday.

Beyond Meat has been selling its product in grocery stores since 2016.

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