Beyond Meat, a prominent vegan food enterprise, has reported a significant drop in its revenue, noting a 31% decrease over the three months leading up to June’s end, compared to last year.
This decline in sales comes despite attempts to make their products more affordable through price reductions.
Shares of the company experienced a 10% dip this Monday, according to a report from Sky News.
CEO Ethan Brown expressed his concerns in a recent investor call, pointing out, “This change in perception is not without encouragement from interest groups who have succeeded in seeding doubt and fear around the ingredients and process used to create our and other plant-based meats.”
Brown believes the challenge lies in winning over potential customers who view Beyond Meat products as unhealthy or excessively processed.
To counter these perceptions, the company has rolled out an advertising campaign focusing on elucidating its straightforward manufacturing process and emphasizing the health advantages of its offerings.
“It is an education issue. The facts are there. The health benefits of our products are very strong,” stated Mr. Brown.
In an innovative approach to shift public opinion, the company has even approached some of its rivals to consider joint advertising efforts that shed a positive light on plant-based foods.
Looking ahead, Beyond Meat projects its revenue for 2023 to hover between $360m and $380m, a revision from the previously anticipated $415m.
As part of its strategy to boost sales, the company has been “testing” price reductions, aiming to offer its primary products at prices comparable to or even lower than those of traditional animal proteins.
While Beyond Meat has established collaborations with McDonald’s in the UK and Europe, offering plant-based burgers and nuggets, these specific items have yet to hit the U.S. market.
Nevertheless, Brown remains optimistic, anticipating that U.S. fast-food restaurants will add plant-based options in the near future.
In a move to curb expenses, Beyond Meat had previously announced in October that it would implement job cuts to realize savings of about $39m.
