Vegan giant Beyond Meat is said to be unsure “what’s going on” after cutting its third-quarter revenue forecast by up to $34 million.
The California-based business, which supplies US retailers along with Tesco, Sainsbury’s, and Waitrose, said grocers were ordering less and struggling to keep shelves stocked.
It also claimed that orders from a distributor were lower than expected, while poor weather had damaged stock at one of its warehouses.
“It seems like they don’t really know what’s going on with customer orders, why retail customers are not ordering from them any more,” CFRA analyst Arun Sundaram said.
READ MORE: Beyond Meat ranked world’s most googled vegan brand
Shares have fallen more than 20 per cent since January as investors fret over increased competition from companies like Impossible Foods.
Beyond Meat has also been rocked by the global pea shortage, which it uses for protein in its plant-based burgers.
Its pea supplier, Roquette, said an arid summer on the Canadian prairies had sent prices soaring by 120 per cent.
Beyond Meat now expects third-quarter net revenue of $106 million, down from its previous forecast of $120 million to $140 million.
In New York last Friday shares closed down $12.82, or 11.8 per cent, at $95.80.
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