Beyond Meat revenues collapsed in the second quarter as demand for its plant-based burgers and sausages waned despite price cuts.
The group’s reported revenue was down by 30.5 per cent year-to-year at $102.1million (£80.4million) from April to June, the US company told investors this week.
California-based Beyond Meat now expects full-year sales of between $360million and $380million, slashing previous forecasts of between $375million and $415million.
The California-based company adjusted its full-year revenue forecast to $360-380million
Beyond Meat shares fell sharply in US trading.
Beyond Meat president and CEO Ethan Brown highlighted tough comparisons with the second quarter of 2022, which saw the company’s sales boosted by the post-pandemic reopening of stores and restaurants.
Brown also told investors an ad campaign launched by the group last week will better explain its ‘clean and simple’ manufacturing process, and highlight the product’s credentials.
He previously revealed Beyond Meat was finding it difficult to appeal to new customers because of perceptions that its products are unhealthy and overly processed.
However, the group’s net loss for the period narrowed to $53.5million from $97.1million a year earlier.
He said: ‘We’re going to be much more aggressive in our marketing.
‘It is an education issue. The facts are there. The health benefits of our products are very strong.’
Plant-based meat alternatives demand wanes
The emergence of a spate of meat alternatives businesses, including rivals like Impossible Foods, was initially met with fanfare, with firms attracting substantial valuations.
Consumers were attracted by the prospect of potentially healthier and more environmentally friendly meat alternatives.
However, momentum has not been sustained, with analysts at PGIM recently claiming demand had already ‘either plateaued or peaked’.
The asset manager said: ‘Plant-based meats have dominated headlines, but reality does not match the hype.
‘Only a few years ago – as fast- food chains began to offer Beyond Meat burgers – There were expectations for continued exponential growth and drastic changes in consumer preferences.
‘But growth rates have faltered, and today, the alternative meat market remains a tiny sliver – less than 0.2 per cent – of the $1.7trillion global meat market.
‘In fact, alternative meat demand is in decline while global demand for animal-based meat is set to grow by 14 per cent by 2030.’
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