Beyond Meat adjusts its revenue forecast due to declining demand for plant-based products.
- The company now expects 2023 revenue between £283m and £299m, down from previous expectations.
- Inflationary pressures are pushing customers towards cheaper animal protein options, impacting sales.
- Beyond Meat’s Q2 net revenue fell nearly 31% to $102.1m, below analysts’ expectations.
- The firm is testing price cuts and expanding its product range to boost consumer interest.
Beyond Meat has revised its annual revenue forecast, now predicting figures between £283m and £299m for 2023. This adjustment is a reduction from its earlier projection of £295m to £326m. The change reflects a decrease in consumer demand for plant-based meat amidst rising inflation, as customers increasingly prefer more affordable animal protein alternatives.
The company’s second-quarter performance revealed a significant decline, with net revenue falling by almost 31% to $102.1m, failing to meet the average analysts’ estimate of $108.4m. This downturn indicates the challenges Beyond Meat is facing in maintaining its market share in the plant-based sector.
According to CFRA research analyst Arun Sundaram, the disappointing guidance cut is a setback, especially after a promising start to the year. The company is now compelled to address issues related to cash flow and potential capital raising, emphasising the need for strategic changes to stabilise its financial position.
Ethan Brown, CEO of Beyond Meat, addressed the perception issues surrounding plant-based meat products, attributing some of the consumer hesitancy to misinformation campaigns by interest groups sowing doubt about the ingredients used in these products.
In an effort to revive interest and improve sales, Beyond Meat is experimenting with price reductions and has expanded its product offerings with new chicken-style items. These strategies aim to attract consumers by aligning plant-based product prices with or below their animal protein counterparts.
Beyond Meat is navigating a challenging market landscape by adjusting forecasts and adopting strategic measures to regain consumer trust and market share.
