Beyond Meat reports slump in sales
Vegan burger maker, Beyond Meat has seen its sales fall by almost a third amid the cost-of-living crisis.
The US firm has cut its revenue forecast following the quarterly slump, with sales falling 30.5% to $102.1m in the quarter to 1st July, missing analysts’ expectations.
Founded in 2009, Beyond Meat’s plant-based products include burgers that appear to bleed as well as imitations of sausages and meatballs, while they co-developed McDonald’s McPlant vegan burger. As of June 2023, their branded products were available at approximately 190,000 retail and foodservice outlets in more than 75 countries around the world.
However, as consumers make changes to the shopping habits amidst the cost-of-living crisis, shoppers have increasingly turned to cheaper items and processed meats and more traditional vegan or vegetarian options.
Beyond Meat said its operating environment continues to be affected by “uncertainty related to macroeconomic issues, including softer demand in the plant-based meat category, high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession, among other things, all of which have had and could continue to have unforeseen impacts on the company’s actual realized results”.
Net revenues are expected to be in the range of approximately $360 million to $380 million, representing a decrease of approximately 14% to 9% compared to 2022, according to their second quarter 2023 financial results.
It added that given the greater than expected consumer and category headwinds and their anticipated impact on net revenues, the company believes it is “unlikely” it will meet its previously stated target of achieving cash flow positive operations within the second half of the year.
