Corporate Profiles - 2023 - 56

COMPANY overview
Beyond Meat, Inc.
Addressing ongoing weak demand with
innovation, information
W
eak consumer demand for plant-based
burgers has become a major problem for
Beyond Meat, Inc.
Record inflation played a part in plummeting
sales over the past year as shoppers opted for
lower-cost proteins.
" Like many innovative disruptions throughout
history, what we initially thought was going to
be a quicker pace of mainstream adoption has
proven to be slower, " said Ethan Brown, founder,
president and chief executive officer of the El Segundo,
Calif.-based company, in August during a
conference call.
For the first six months of fiscal 2023, Beyond
Meat sustained a loss of $112.5 million, which
narrative that is now afoot, and this gap appears
to have widened. "
He said the company is attacking " this misinformation "
by building a body of research and
establishing collaborations with health agencies
such as the American Cancer Society and American
Heart Association. A marketing campaign
unveiled during the summer focuses on the farmers
who grow ingredients for Beyond Meat " while
explaining the clean and simple steps we use to
build our plant-based meats, " Mr. Brown said.
Meanwhile, Beyond Meat is betting on innovation
as part of its focus on near-term opportunities
to restore top-line growth. In August, the company
introduced the Beyond Stack Burger, a frozen product
developed to build off the growing smash-burger
trend, in select Kroger stores nationwide.
The company also saw success with its frozen
Beyond Steak product. In July, Beyond Meat expanded
distribution of the seared steak-like tips
to nearly 14,000 stores nationwide. The expansion
of Beyond Steak followed the debut of the newest
iteration of Beyond Sausage, featuring a meatier
texture and taste, according to the company.
As of March, Beyond Meat branded products
Chief executive officer -
Ethan Brown
compared favorably to the first six months of fiscal
2022 when the company recorded a loss of
$197.6 million.
Sales for the period fell significantly, to $194.4
million from $256.5 million the year before.
Other factors contributing to a shortfall in performance,
per Mr. Brown, are ambiguity around the
health benefits of meat alternatives and a crowded
market that may have confused consumers.
" As a brand and category, we have significantly
more work to do to reach the consumer on the
health benefits of Beyond Meat and plant-based
meats, respectively, " Mr. Brown said. " There is a
considerable gap between the strong health credentials
of our products and a broader counter
56 \ October 2023
were available in approximately 191,000 retail
and foodservice outlets in more than 80 countries.
Mr. Brown said the company is increasing
its investment in in-store execution in the United
States, noting, " a reset and regrounding, particularly
in the refrigerated meat case, is overdue. "
" In addition to working with retailers on this
issue, we are doubling down on field resources to
focus on shelf availability and presentation as we
bring new renovations to market, " he added.
The company has made progress toward its
goal of achieving cash-flow positive operations by
reducing the cost of goods sold, operating expenses
and cash consumption as it strives to become
cash-flow positive while aggressively managing
inventory levels.
" Simply put, as we navigate what has proven to
be a more prolonged crossover from early adoption
to the mainstream than we anticipated, we
are operating with increasing levels of efficiency, "
Mr. Brown said. CP
Beyond Meat, Inc.
net income (loss)
in millions
2022
($366.1)
2021
($182.1)
2020
($52.8)
Source: Beyond Meat, Inc.
Beyond Meat, Inc.
net revenue
in millions
2022
$418.9
2021
$464.7
2020
$406.8
Source: Beyond Meat, inc.
Beyond Meat, Inc.
share price
$12
$15
$18
$21
$9
Sept. Nov.
2022
Jan.
2023
HIGH =
Feb. 2, 2023 = $20.22
LOW =
May 16, 2023 = $10.02
Sept. 15, 2023 = $10.35
March May
Source: New York Stock Exchange
BEYOND MEAT, INC.
July
Sept.
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Corporate Profiles - 2023

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