Beyond Meat, a plant-based meat substitute maker, experienced a 30.5% decline in revenue during the second quarter. Despite implementing price cuts, consumer demand for their burgers, sausages, and other products decreased. As a result, the California-based company has adjusted its full-year revenue forecast. Beyond Meat now anticipates revenue ranging from $360 million to $380 million for the year. This is a decrease from the previous forecast of $375 million to $415 million issued at the end of the first quarter. Following this announcement, Beyond Meat’s shares dropped by 10% in after-hours trading on Monday.
The decline in revenue can be attributed to weak sales in both retail and food service sectors, resulting in a 40% drop in US revenue. International revenue also saw a decline of 8.7%. Beyond Meat’s President and CEO, Ethan Brown, explained that the company faced challenging comparisons to the second quarter of 2022. During that time, a new beef jerky product generated sales and restaurants were reopening, leading to significant orders. However, Beyond Meat is also encountering difficulties in attracting new customers due to perceptions that their products are unhealthy and overly processed. To address this, the company has launched an ad campaign to promote its “clean and simple” manufacturing process and emphasize the health benefits of its products.
Brown emphasized the need for more aggressive marketing and stated, “It is an education issue. The facts are there. The health benefits of our products are very strong.” Beyond Meat has even reached out to some of its competitors to explore collaborative advertising campaigns aimed at changing perceptions about the plant-based meat category. While Beyond Meat has a partnership with McDonald’s in Europe to produce plant-based burgers and nuggets, these products are not available in the US. However, Brown is optimistic that more US fast food restaurants will soon offer plant-based options.
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