The plant-based meat industry is in bad shape. U.S. sales fell last year as enthusiasm for vegan burgers and sausages in the pandemic era continued to wane. Beyond Meat, once the darling of the plant-based meat boom and the first of its cohort to go public in 2019, has become a cautionary tale about the tough road ahead for similar companies.
Beyond Meat announced mixed results for the second quarter of 2024Revenue fell 8.8 percent and sales volumes decreased 14 percent compared to the second quarter of 2023, but the margin the company earned on each of its products increased.
“We are encouraged by many of the results we are seeing this quarter, results that demonstrate clear progress toward our 2024 plan and our long-term goal of profitable operations,” said Beyond Meat CEO Ethan Brown. told investors on an earnings call Wednesday.
In 2023, Beyond’s revenues decreased by 18 percent to $343.4 million—which was above the low market expectations—but also reported a loss of $82.7 million. In the United States, sales fell by 32.3 percent. So far, the company has not recovered, announcing a weak first quarter with revenue down 18 percent to $75.6 million as it continued to be affected by disappointing U.S. demand.
Europe has been one of the brightest spots for Beyond in recent years. In 2023, the company’s international sales grew while sales in The United States fell dramaticallyIn the UK, McDonald’s has been selling McPlant burgers featuring Beyond Meat patties since autumn 2021, while a similar partnership in the US has not made it past the testing stage.
While Beyond also reported declining sales internationally, on the latest earnings call, CFO Lubi Kutua said the company was focused on expanding its distribution in Europe. “We’re starting from a very small base in the EU,” Kutua said. “We just don’t have that big of a presence in Europe right now.”
Faced with tough decisions on its path to profitability, one investor predicted during a February earnings call that the “center of gravity” of Beyond’s business would likely shift to international markets. Brown didn’t directly address that point on the February call, but admitted that in his view the conversation in the U.S. about plant-based meats had become “politicized” and “clouded by this misinformation.” Plant-based meat He has faced animal meat in America’s culture war.
The entire plant-based industry has been plagued by a fickle customer base. Rival Impossible Foods, which is aiming for a “liquidity event” to raise capital In a move that could lead to an initial public offering or considering a sale to another company, it has decided Rebrand to increase its appeal to meat consumers.Meanwhile, other vegan brands like Nowadays, Meatless Farmand VBitas have gone bankrupt.
Plant-based meats shouldn’t be completely dismissed, says Chris DuBois, executive vice president of the analytics firm Circana. “It’s still a billion-dollar category, and that’s a big deal.”