Beyond Meat vs. Impossible Foods: The very real battle between the biggest ‘fake-meat’ competitors - Klue (2024)

Product Marketing

Beyond Meat vs. Impossible Foods: The very real battle between the biggest ‘fake-meat’ competitors - Klue (1) Adam McQueen

As is my usual routine, I watched an embarrassing amount of basketball over the weekend. You know the days where you sit for so long that all you have to show for your past eight hours of existence is a full body imprint on the couch.

I’d say I’m ashamed to admit this, but anyone who knows me won’t be surprised at all.

More importantly, there are three big questions that have been bouncing around my brain following an ungodly amount of television consumption.

  • How can anyone think playoff basketball isn’t the best?
  • What species is LeBron, because he’s definitely not human?
  • Doeseverysingle restaurant now boast a plant-based meat alternative?

Nearly every single food-related commercial I sat through advertised their newest plant-based alternative. Starbucks. Burger King. McDonald’s.

You name it, and they’re likely spending serious advertising money to showcase their newest plant-based recipes.

It got me thinking: how bighas this market gotten, and who’s cashing in?

As it turns out, there’s some veryrealcompetition happening in the ‘fake-meat’ world.

Beyond Meat vs. Impossible Foods: The very real battle between the biggest ‘fake-meat’ competitors - Klue (2)

Who sits atop the meatless food chain?

According toBloomberg,the market for plant-based meat alternatives is expected to reach $450 billion by 2040. In the U.S. alone, plant-based meat salesgrew by 45%,for a total of $1.4 billion.

And leading the way for this plant-based revolution has been Beyond Meat. The company established themselves in 2009 and enjoyed a significant first mover advantage as the first to market with mainstream ‘meatless meat’ products.

Beyond’s products are found in 42,000 U.S. restaurants, 80+ international markets, and account for 22% of the frozen/refrigerated retail meat alternatives. After going public in 2019, the company quickly blew up toa $13 billion valuation.They were considered disruptors in the market, trying to make a dent in the gargantuan (and seemingly unsustainable) meat industry.

Meat alternatives were nothing new. But Beyond’s strategy was. Rather than confining themselves to the niche vegetarian audience, Beyond targeted the much larger market of meat-eaters.

Beyond Meat vs. Impossible Foods: The very real battle between the biggest ‘fake-meat’ competitors - Klue (3)

Voxwrote in a 2019 article,that Beyond’s strategy was to “ensure that their product has the flavour, macronutrient balance, and cooking experience of meat.”

If they could nail these key parts of their food and cater more towards meat-eaters, not only did it create a much larger total addressable market of consumers, but their product would already be differentiated within that market.

As it turned out, the feel-good ethical and health reasons for consuming meat alternatives actually helped their product stand out far better than having to compete against other vegetarian food options.

They even commissioned theUniversity of Michigan to research and compare the environmental impact of producing a Beyond Burger and a regular beef patty.Talk about some data-backed marketing!

Beyond Meat vs. Impossible Foods: The very real battle between the biggest ‘fake-meat’ competitors - Klue (4)

Beyond set out to lower the barrier to turn meat-eaters into consumers, and their distribution strategy followed suit. Their focus was to make plant-based alternatives mainstream.

“The promise there was, ‘we’re going to have plant-based protein’, we’re not going to sell it in the frozen veggie food aisle, we’re going to sell it in the meat aisle of the grocery store, we’re going to go to restaurants, we’re going to go to retail. We’ll expand our distribution and go overseas. There’s a constant flow of product innovation and a constant expansion of product distribution,” said Al Root, Sr. Writer at Barron’s on ‘The Readback’ podcast.

Beyond’s partnership with dine-in restaurants was a strong brand play, and it also normalized their product to meat-eaters. While some consumers might be skeptical about cooking it themselves, there’s more comfort in trying it at a restaurant.

Although this strategy allowed Beyond to climb atop of the meatless food chain and make a dent in the larger meat industry, the early success of their approach has paved the way for serious competition to enter the fray.

Impossible Foods are coming for the crown

Just like my weekend viewing showcased the new generation of hoopers that are in line to take over the league from the elder statesmen, there are newer plant-based meat alternatives that are taking bites out of Beyond Meat’s lead.

Their competitive advantage in terms of having a monopoly of power in the market has been dwindling, and Impossible Foods has emerged as their most serious competitor. There are two main reasons why Impossible has made inroads.

The pandemic dip

Beyond’s strategy to place their product within dine-in restaurants took a significant hit due to the pandemic.

Their revenue split from big restaurants to small operatorswent from 30%-70% in 2019, to 42%-58% in mid 2020.And this revenue change wasn’t because of adding large chains, but due to the rapid decline in smaller businesses.

Meanwhile, the majority of Impossible Food’s initial partnerships were with large chain restaurants that offered drive-thru and delivery options. These distributors were more resilient during the pandemic, allowing Impossible to scale quickly and reduce costs.

Beyond is now pivoting towards larger chain partnerships, most notably with McDonalds and Yum Brands!, but they’re in the unfamiliar territory of playing catch-up.

When a first mover like Beyond has a monopoly advantage, they can price its product without the competitive pressures from a rival.

It’s a necessary evil for consumersas the Rutgers Business Review explains:

“The first-mover spends a considerable amount of time and resources in creating and introducing its product in the market.”

But, this high price point limits your consumer base. And while Beyond’s strategic decision to compete against meat products has paid off, they were still a long way away from matching cheap meat prices.

Meanwhile, Impossible Food’s rapid growth over the pandemic — hitting production records and achieving greater economies of scale — allowed them to drastically slash their prices by 20% in restaurants and grocery stores earlier this year in an attempt to better compete with meat. They made their product more buyable to the broader consumer base, and with an eye on taking advantage of Beyond’s leader status.

“We were thinking about cost reductions and getting to the cost structure of commodity ground beef from the very beginning,” said David Lee, chief financial officer of Impossible Foods, inan interview with Vox.“We knew that if we had the best product at the same cost, then consumers would vote with their stomachs.”

The more competition… the better?

While Impossible Foods has stolen market share from Beyond in the meat alternative space, ultimately the roadmap that Beyond has set out actually means that these competitors are working in lockstep.

Yes, they’re competing against each other as the preeminent meat alternative, but both are angling to take market share from agricultural companies producing animal meats.

Considering that plant-based meats are onlyan estimated 3% of packaged meat sales in the U.S.,the rise in meat alternative competition can lift all boats. Beyond’s year-over-year sales growth continues to accelerate despite their market share shrinking.

And many other companies — even massive meat producers — are nowcreating their own meatless product lines,allowing even more consumers to try plant-based options.

The lessons of Beyond’s approach are applicable across any business. They thought about their competitive set beyond just the narrow scope of the vegetarian meat market — they went after all meats. Being able to see the forest from the trees is how unicorn businesses are born.

And now Beyond has paved the way for competitors to flood the market, which isn’t bad for them either! As the established leader that still possesses the best brand awareness amongst customers, more products in the category will only help. As Crispin Read mentioned in his article, ‘Positioning Done Right’:

“A challenger in a competitive market is guilty until proven innocent. The leader is the obvious choice. If you fail to differentiate, buyers will assume that there is no difference, and buy from the leader.”

However, Beyond must continue innovating its product, distribution, and partnerships in order to hold off competitors like Impossible from taking not only a slice of the pie, but the whole damn thing.

Beyond Meat vs. Impossible Foods: The very real battle between the biggest ‘fake-meat’ competitors - Klue (5)

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Beyond Meat vs. Impossible Foods: The very real battle between the biggest ‘fake-meat’ competitors - Klue (2024)

FAQs

Beyond Meat vs. Impossible Foods: The very real battle between the biggest ‘fake-meat’ competitors - Klue? ›

Sales plateaued in 2021, and some of the plant-based-meat darlings — including Beyond Meat and Impossible — began to dip. Beyond Meat's stock price has fallen almost 80 percent in the past year; Impossible conducted two rounds of layoffs in 2022, letting 6 percent of its workforce go in October alone.

Who is the biggest competitor to Beyond Meat? ›

Top 10 Beyond Meat competitors
  • Climax Foods.
  • THIS.
  • Planetarians.
  • Rebellyous Foods.
  • DAIZ.
  • Prime Roots.
  • Good Catch.
  • SuperMeat.

What went wrong with Beyond Meat? ›

Sales plateaued in 2021, and some of the plant-based-meat darlings — including Beyond Meat and Impossible — began to dip. Beyond Meat's stock price has fallen almost 80 percent in the past year; Impossible conducted two rounds of layoffs in 2022, letting 6 percent of its workforce go in October alone.

Who is Impossible Foods biggest competitor? ›

Impossible Foods's competitors and similar companies include Beyond Meat, Perfect Day, Next Level Burger and Hungry Planet. Impossible Foods is a company that develops meats and cheeses made from plants. Beyond Meat is a company producing vegetarian meat substitutes.

Is Beyond Meat better than Impossible? ›

Are Impossible and Beyond Meat Healthy? From a nutrition standpoint, Impossible and Beyond Meat stack up quite similarly to beef (see below for a side-by-side comparison). That said, there are a few notable differences: Beyond has significantly less saturated fat than both ground beef and Impossible Burger.

Is Beyond Meat a junk food? ›

Unfortunately, even though an alternative to beef is better for the environment, it may not necessarily be better for your health. The Beyond Meat burger has 18 ingredients, the Impossible Burger has 21. Both are highly processed and contain several additives and inflammatory oils.

Is Beyond Meat a Chinese company? ›

Beyond Meat, Inc. is a Los Angeles–based producer of plant-based meat substitutes founded in 2009 by Ethan Brown. The company's initial products were launched in the United States in 2012. The company went public in 2019, becoming the first plant-based meat analogue company to go public.

Is Beyond Meat actually not healthy? ›

Plant-based meat alternatives have a lot going for them: They can help you reduce your meat intake, which may lower your risk for health problems, and they can lessen your carbon footprint. But, they're not exactly health foods because they are processed and still contain saturated fat and sodium.

Why does McDonald's not have Beyond Meat? ›

Their assessment was that they don't see enough evidence to support a national rollout in the near future." At that point, franchises were only selling 20 McPlants per day, which was well short of the target of 40-60 McPlants per day. Because of this, Beyond Meat's shares dropped by 6%, according to CNBC.

Which is healthier impossible or beyond? ›

Beyond Meat is a little better. "It has a similar nutrition profile to Impossible Meat, but does not contain soy and has less micronutrients because it's not fortified with as many vitamins and minerals," Samuels says. "Per their website, Beyond Meat also does not contain any genetically modified ingredients.

Which tastes better beyond or impossible? ›

The Impossible Burger crumbles melded with the sauce far better, offering a texture and flavor nearly identical to ground beef. The bottom line? Honestly, they're both great options. If you're a meat eater looking for the most realistic alternative to ground beef, though, go with Impossible Burger.

Is Beyond healthier than beef? ›

Beyond Meat is not healthier than beef when you compare them side by side. Beyond Meat has more calcium (100 mg vs. 18 mg) than beef. However, once we get beyond calcium into important vitamins and minerals to your health, Beyond Burger lacks all of these.

What lawsuits did Impossible Foods have? ›

Redwood City, California-based Impossible Foods sued Motif, a Boston-based spinoff of biotech company Ginkgo Bioworks, in March. Impossible Foods said Motif's products with Hemami infringe patents related to imitation meat that uses the protein molecule heme to replicate meat's taste, smell, texture and appearance.

Is it OK to eat Beyond Meat everyday? ›

“Compared to a meat-based burger, Beyond and Impossible contain roughly the same amount of saturated fat and more sodium,” she says, both of which, when over-consumed, can increase the risk of heart disease and stroke.

Is Beyond beef highly processed? ›

Some highly processed products, such as those from Beyond Meat and Impossible Burger, are just as high in total and saturated fat as their meat counterparts. The burgers even contain more sodium than a single beef patty, which may not support heart health ( 12 , 18 , 19 ).

Did Bill Gates invest in Impossible Burger? ›

The chain originally gave its meat-free creation a trial run in 59 restaurants in St. Louis, Missouri before expanding the trial. The company was founded in 2011 and has raised over $2 billion in funding from investors including Microsoft founder Bill Gates and tennis champion Serena Williams.

Does Mcdonald's use Beyond Meat? ›

McPlant® A vegan burger made with a juicy plant-based patty co-developed with Beyond Meat® featuring vegan sandwich sauce, ketchup, mustard, onion, pickles, lettuce, tomato, and a vegan alternative to cheese in a sesame seed bun.

Which meat substitute is healthiest? ›

The healthiest meat substitute will be natural vegetarian foods, high in protein and minimally processed. Great, healthy meat substitutes include beans, tempeh, lentils, jackfruit, mushrooms, nuts, and seeds.

Is Beyond Meat inflammatory? ›

The Downside of Meatless Burgers

In addition, the mung beans are a legume, which means they have high concentrations of lectins. These are carbohydrate-binding proteins, and in some people, they can be toxic, allergenic, and pro-inflammatory.

What plant is Beyond Meat made from? ›

We use a variety of non-GMO plant proteins including pea, brown rice, mung bean and faba bean, which team up to give you juicy and nutritious plant-based meat that's a good source of protein. For specific ingredients and nutrition information, please visit our product pages.

Is Beyond Meat really plant-based? ›

What is Beyond Meat made from? Beyond Meat products taste so much like animal-based products that it's hard to believe they are composed entirely of plant ingredients. Each product is different, though the main components are water, pea protein, various oils, and seasonings.

Is Beyond Meat plastic? ›

The popular plant-based Beyond Meat and Impossible Burgers sold at Costco, and in most supermarkets, are packaged in non-biodegradable plastic containers, sealed in plastic wrap, and covered in cardboard. “Yes, sadly, there is far too much single-use plastic packaging in the world,” Hunnes says.

Which is healthier turkey burger or Beyond Burger? ›

The Beyond Burger has less saturated fat than the beef or Impossible Burger (6 grams), but a similar calorie count, with 250 calories per patty. But a turkey burger has only 4 to 5 grams of saturated fat, and 220 to 240 calories, depending on the brand.

Is Beyond Meat made with chemicals? ›

Beyond Meat says it uses no genetically modified or artificially produced ingredients. The Impossible Burger is made with similar basic ingredients but it gets its protein largely from soy and potato, and it uses an iron-containing compound from soy called heme to enhance the burger's meaty flavor.

Does Beyond Meat have pesticides? ›

Pesticide levels in these burgers are incredibly low and undeniably safe. Consider glyphosate, the world's least beloved pesticide.

Are McDonald's burgers all meat? ›

Every one of our McDonald's burgers is made with 100% pure beef and cooked and prepared with salt, pepper and nothing else—no fillers, no additives, no preservatives. We use the trimmings of cuts like the chuck, round and sirloin for our burgers, which are ground and formed into our hamburger patties.

Why did McDonald's remove veggie burger? ›

For instance, because McDonald's cooked the item on the same grill as and alongside meat, it technically didn't fulfil the necessary criteria to count as a vegetarian dish. This made it off-limits to many would-be customers and may have ultimately contributed to its downfall.

Is McDonald's fries vegan? ›

The fries are not coated in any fats or substances from an animal. Once at the restaurant, our fries are simply cooked in dedicated frying vats in a non-hydrogenated blend of sunflower and rapeseed oil which is 100 percent suitable for vegans.

What is the Impossible Whopper made from? ›

The Impossible Whopper is made with a meat alternative burger patty from Impossible Foods, topped with tomatoes, lettuce, mayonnaise, ketchup, pickles, and onions. It can be ordered with cheese. The Impossible Whopper is prepared with mayonnaise and on the same grill as all other burgers.

Does Beyond Meat taste like meat? ›

The flavor of pea protein is a little tough to describe if you've never had it. Not unpleasant, but not particularly beef-like. The burger packs an umami punch from yeast extract, and also has that faint, inescapable aroma of coconut.

What are the disadvantages of plant-based meat? ›

Con #1: Plant-based meat can be more heavily processed than animal meat. As some plant-based meat and mock meat products are created to replicate animal meat, they may undergo more processing. This leads to a high content of saturated fat, sodium, and added sugar.

What is the white stuff in impossible meat? ›

What are the white specks on the patties? The white specks are similar to marbling that you see on traditional beef burgers, but ours are made from coconut oil and cocoa butter. These plant-based fats provide melty, mouthwatering marbling to the Beyond Burger, creating a juicy texture similar to beef.

What are the white specks in impossible meat? ›

Its white specks are actually coconut oil and cocoa butter. Impossible traded its original wheat-based recipe (version 1.0) for soy and potato protein, plus coconut and sunflower oil (version 2.0).

Why does Beyond Meat taste so real? ›

Heme is found in a protein called hemoglobin that is found in every living plant and animal, and is something we've been eating since the dawn of humanity. This ingredient not only makes Impossible Burgers taste like meat, but helps them stay juicy, moist, and slightly red at the center.

Are veggie burgers better than Beyond Meat? ›

A homemade veggie burger will be lower in saturated fat, calories, and sodium, which are nutrients of concern to the general public. The saturated fat used in Beyond Burger comes primarily from coconut oil, canola oil, and cocoa butter, which have relatively weak associations with heart disease for healthy individuals.

Does Beyond Meat have a lot of sodium? ›

However, when it comes to sodium, the plant-based burgers are packing in far more salt than their meat-based counterparts. The Beyond Burger has 380 mg of sodium, 16% of the total recommended daily limit.

Are Beyond Meat burgers healthy? ›

The good news: Meatless burgers are a good source of protein, vitamins, and minerals. The protein content of these newer plant-based burgers has been created to compete with beef and poultry gram for gram.

Why do vegans not like Impossible Burger? ›

The smell, the texture, the juiciness…it's so beef-like, many vegans are too creeped out to even try it. According to Impossible Foods, the Impossible Burger uses 1/20 the land, requires 1/4 the water, and produces 1/8 the greenhouse gas emissions compared to its cow-based counterpart.

What chemicals are in impossible meat? ›

The Impossible Burger is made from soy protein concentrate, coconut oil, sunflower oil, potato protein, methylcellulose, yeast extract, salt, gums, and water and additives, including vitamin B12, zinc, vitamin B6, thiamin (B1) and niacin. The ingredient that gives an Impossible Burger the taste of meat is heme.

Why can't you eat impossible meat raw? ›

Impossible burgers still need to be cooked to temp!

Though the risk of food-borne illness is smaller for these burgers than for actual meat burgers, there is still some chance. They are made from legumes, grains, and vegetables, and those can become contaminated with pathogenic bacteria.

Are black bean burgers healthy? ›

Protein packed and Healthy – Black bean burgers are packed with fiber, vitamins, and minerals and are much lower in fat and cholesterol than a traditional ground beef burger. Plus, they still have about 12 grams of protein in each burger.

What to eat instead of meat? ›

How to get protein without the meat
  • Pulses. Pulses are an inexpensive protein choice, are high in fibre and a source of iron. ...
  • Soya beans. ...
  • Quinoa. ...
  • Nuts. ...
  • Seeds. ...
  • Cereals and grains. ...
  • Quorn™ ...
  • Dairy.

Does Beyond Meat raise cholesterol? ›

Beyond Meat's plant-based meats can be a better choice than animal protein equivalents because they have less saturated fat, and no cholesterol, added hormones, or antibiotics.

Is Beyond Beef Real beef? ›

What's Beyond Beef? Beyond Beef is a plant-based ground meat made without GMOs, soy, or gluten to deliver on the versatility, meaty texture and juiciness of ground beef. It's ready to use in your favorite recipes.

What is the Beyond Burger made of? ›

The protein in the Beyond Burger® comes from peas, mung beans and rice. It is made with simple, plant-based ingredients without GMOs, soy, gluten or bioengineered ingredients.

Does burger King still have Impossible Burger? ›

In the past year, the chain has trialed vegan chicken burgers in select US locations, plus the Impossible Whopper is still available nationwide.

Is Bill Gates A vegan? ›

In addition to being an investor and proponent of vegan meat, Gates also confirmed that he likes to eat plant-based food himself. What prompted Gates to invest in Beyond Meat was his inability to tell the difference between plant-based and animal-based chicken. “Like most people, I don't think I can be easily fooled.

What food companies does Bill Gates invest in? ›

Gates invested in Hampton Creek Foods, a startup company working on plant protein based egg substitutes, and has praised Beyond Meat, a meat substitute company. Thiel gave a grant to Modern Meadow, a company using animal stem cells in what it calls "tissue engineering" to create meat and leather via 3D printing.

Does Mark Wahlberg own Impossible Burger? ›

Wahlburgers, the better burger restaurant brand founded by Chef Paul Wahlberg along with brothers Donnie Wahlberg and Mark Wahlberg, has launched the Impossible Burger, now available nationwide throughout all participating Wahlburgers locations.

What companies are similar to Beyond Meat stock? ›

The main competitors of Beyond Meat include B&G Foods (BGS), Vital Farms (VITL), Oatly Group (OTLY), Benson Hill (BHIL), The Hain Celestial Group (HAIN), Nomad Foods (NOMD), Mission Produce (AVO), Adecoagro (AGRO), SunOpta (STKL), and BRF (BRFS). These companies are all part of the "consumer staples" sector.

Is Bill Gates associated with Beyond Meat? ›

"I think eventually these products will be very good even though their share is small today," he added. Gates said he has backed meat alternative brands Beyond Meat, Impossible Foods, and Upside Foods (formerly known as Memphis Meats).

What industry does Beyond Meat compete in? ›

Beyond Meat, Inc. develops, manufactures, markets, and sells plant-based meat products in the United States and internationally. The company sells a range of plant-based meat products across the platforms of beef, pork, and poultry.

Which celebrity investors in Beyond Meat? ›

2 Beyond Meat

From the purely financial supporters such as Leonardo DiCaprio and Bill Gates to the more public investments of Snoop Dogg, Chris Paul, and DeAndre Hopkins, this vegan meat company has earned its spot on the red carpet and the ESPN Zone.

Is Beyond Meat a good stock to hold? ›

The stock isn't that cheap

But that is still far too much to pay for a company with declining revenue that doesn't even generate gross profits. Investors should avoid the shares because of the risk of continued downside over the long term.

Why is Beyond Meat stock struggling? ›

Some of the problems can be attributed to broader industry challenges. In the grocery store, interest in plant-based meats has waned as consumers, faced with inflation, focus on shopping for affordable basics. At the same time, restaurant traffic is dipping.

Is Beyond Meat a good stock to buy now? ›

Beyond Meat has received a consensus rating of Hold. The company's average rating score is 1.55, and is based on no buy ratings, 6 hold ratings, and 5 sell ratings.

Does McDonald's use Beyond Meat? ›

McPlant® A vegan burger made with a juicy plant-based patty co-developed with Beyond Meat® featuring vegan sandwich sauce, ketchup, mustard, onion, pickles, lettuce, tomato, and a vegan alternative to cheese in a sesame seed bun.

Is McDonald's going to use Beyond Meat? ›

McDonald's is expanding its McPlant line with another Beyond Meat item.

Is Bill Gates A Vegan? ›

In addition to being an investor and proponent of vegan meat, Gates also confirmed that he likes to eat plant-based food himself. What prompted Gates to invest in Beyond Meat was his inability to tell the difference between plant-based and animal-based chicken. “Like most people, I don't think I can be easily fooled.

What is the future of Beyond Meat? ›

Stock Price Forecast

The 11 analysts offering 12-month price forecasts for Beyond Meat Inc have a median target of 13.00, with a high estimate of 20.00 and a low estimate of 5.00. The median estimate represents a -3.95% decrease from the last price of 13.54.

Who is the target market for Beyond Meat? ›

Their primary target focus is on meat avoiders, following meat reducers and meat consumers. This applies to vegans, vegetarians, omnivores, and flexitarians or semi- vegetarians.

Is Beyond Meat a takeover target? ›

Beyond Meat has spearheaded the development of the plant-based meat market and has advanced to become a recognized brand. Weak fundamentals and a low-quality credit profile make the shares unattractive. A takeover scenario is not out of the question but we believe that any potential suitors have little urgency to act.

How much stock does Bill Gates own in Beyond Meat? ›

Bill Gates started to build up the position in Beyond Meat in Q3 2019. Since then they sold 96.5 Thousand shares. The investor sold all their shares in Q4 2019 and doesn't own any shares in Beyond Meat anymore.

What happened to the CEO of Beyond Meat? ›

The Beyond Meat executive who was accused of biting a man's nose is leaving the vegan food company. The US firm, known for its plant-based burgers, had suspended Douglas Ramsey, then chief operating officer, indefinitely after the incident.

Did the CEO of Beyond Meat bite someone? ›

Beyond Meat said Chief Operating Officer Doug Ramsey is leaving the company, a departure that comes after the executive allegedly bit another man's nose outside a football game.

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