Shoppers’ preference for budget-friendly alternatives causes significant drop in Beyond Meat’s sales

A recent study conducted by Which? revealed that plant-based sausages are consistently priced twice as high as animal meat counterparts. Ethan Brown, the President and CEO of Beyond Meat, faced scrutiny from investors regarding these findings. Brown acknowledged that the plant-based category is struggling to attract new consumers, stating, “The overall market share is not expanding, and this is an issue that needs to be addressed collectively with other companies.”

Brown acknowledged the difficulties of appealing to new customers due to the perception that Beyond Meat’s products are unhealthy and overly processed. In an effort to combat these misconceptions, the company launched an advertising campaign to highlight the “clean and simple” manufacturing process of their products and emphasize their health benefits. Brown stated, “We will adopt a more assertive marketing strategy. It boils down to educating consumers. The facts are clear – our products offer significant health advantages.”

This sales slump follows Beyond Meat’s reduction of 200 jobs in October last year, which coincided with McDonald’s discontinuation of the McPlant burger from its US menu. Beyond Meat reported revenue of $102.1 million in the three months leading up to June, falling short of Wall Street’s forecast of $108.7 million.

The decline in revenue was mainly attributed to a 40% drop in US sales, affecting both retail and food service sectors. International revenue also declined by 8.7%. While international food service demand remained stable compared to the same period last year, retail sales decreased by nearly 16%. It is worth mentioning that Beyond Meat’s plant-based burgers and nuggets, produced in partnership with McDonald’s, are exclusively available in Europe and not in the US. Brown expressed optimism that more US fast food chains will introduce plant-based options in the near future.