Beyond Meat has cut its annual revenue forecast and missed second-quarter net sales estimates, as demand continues to slow for plant-based meat products.
According to Reuters, the vegan manufacturer has forecast 2023 revenue between £283m – £299m ($360m and $380m), compared with its prior expectation of £295m – £326m ($375m to $415m).
Impeded by inflationary pressures, customers are now opting for lower-priced animal protein over alternatives such as plant-based products – as 73% of vegan shoppers actively trying to make savings on their grocery bills.
Beyond Meat’s quarterly net revenue fell nearly 31% to $102.1m, missing analysts’ average estimate of $108.4 million – adding that it was unlikely to meet its target of achieving cash flow positive operations within the second half of 2023.
The company had said in October last year that it would cut jobs, which was expected to lead to savings of about $39 million over 12 months.
CFRA research analyst Arun Sundaram said: “The guidance cut is disappointing, especially considering the decent start to the year.
“We are now back to talking about cash burn and the need to raise capital… Something needs to change to prevent this ship from sinking,” he added.
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CEO of Beyond Meat, Ethan Brown, commented on the ambiguity around the health benefits of plant-based meat, telling Reuters: “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.
Beyond Meat has recently been “testing” price cuts to attract customers by offering its core products at a price point that is at or below their animal protein equivalent.
Additionally, the brand expanded its range of plant-based meat offerings with new chicken-style products, including the Beyond Burger chicken-style, Beyond fillet, and Beyond nuggets in April.
