Beyond Meat, a major player in the vegan food industry, has reported a substantial drop in revenue, down nearly 31% in the three months leading up to the end of June compared to the previous year. Despite implementing price cuts, demand for its plant-based burgers, sausages, and other offerings has fallen.
Shares in the company plummeted by 10% on Monday following this revelation. The decrease in demand can be attributed, in part, to the ongoing cost of living crisis, as consumers opt for lower-priced animal protein over plant-based alternatives.
Ethan Brown, CEO of Beyond Meat, noted that ambiguity surrounding the benefits of plant-based options has also contributed to this decline. He highlighted how interest groups have successfully sown doubt and fear about the ingredients and processes used to create plant-based meats, changing perceptions about their healthiness.
Brown acknowledged that the company’s products have faced difficulties in appealing to new customers, who perceive them as unhealthy and overly processed. To counter this, Beyond Meat is launching an aggressive advertising campaign to elucidate its “clear and simple” manufacturing process and emphasize the health credentials of its products.
The company plans to collaborate with competitors on ads aimed at reshaping public perceptions about plant-based food. Despite the challenging circumstances, Beyond Meat is optimistic about the future, with Mr. Brown anticipating that US fast food restaurants will soon add more plant-based options to their menus.
While Beyond Meat has been successful in Europe and the UK, where it collaborates with McDonald’s on plant-based burgers and nuggets, the products are not available in the US. The company has taken measures like price cuts to attract customers by offering its core products at competitive price points.
