Beyond Meat recently reported a 7.6% revenue increase for the third quarter, marking its first quarterly growth since 2022. However, a deeper look reveals that the rise isn’t necessarily a sign of recovery for the alt-meat maker – nor for the struggling plant-based sector at large.
Here’s why: For one, Beyond Meat raised its prices in recent quarters to offset high ingredient costs, and while that helped boost its revenue, it came at the expense of sales volume — and it may not be a sustainable strategy moving forward.
The number of products sold actually declined 7% year over year, suggesting that many consumers are finding Beyond Meat products too costly and are instead turning to cheaper options.
The alt-meat company’s efforts to position itself as a premium brand – with new items like Beyond Sun Sausage, which doesn’t even attempt to mimic meat – may attract some new consumers, but this approach has yet to stabilize its core business.
Beyond the Grocery Sector
The decreased demand of Beyond Meat’s products isn’t limited to grocery stores either; its restaurant clients, including fast-food giants like McDonald’s, are also experiencing weaker interest in menu items that contain plant-based meat.
The company’s U.S. foodservice sales saw a modest uptick, partially driven by its recent expansion in Panda Express locations. That being said, its international foodservice sales dropped 22%, signaling a mixed reception among markets.
For example, in regions like Germany and France, Beyond made marginal progress by meeting local standards and launching new products. However, the company’s sales slowed significantly in other European markets.
Nonetheless, Beyond Meat CEO Ethan Brown remains optimistic, expressing that his company will continue to work toward making plant-based meat as affordable as its animal-based counterparts.
For now, the brand is experimenting with different price points, keeping its older (and lower-cost) products on supermarket shelves while marketing its more premium offerings to appeal to a wider range of customers.
Beyond the Doubts
Beyond Meat’s cautious revenue forecast for the rest of the year highlights the challenges it continues to face moving forward.
Not only were its shares down around 5% in extended trading, according to Reuters, but the alt-meat company expects its revenue to fall at the lower end of its initial range as well, which would be somewhere between $320 million and $330 million – slightly down from its previous projections.
For both Beyond Meat and its investors, the question has become: Can Beyond Meat win back consumers who were disappointed by previous products and weather the growing skepticism around plant-based meat?
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