Plant-based meat substitute maker Beyond Meat said its revenue plunged 30.5% in the second quarter as consumer demand for its burgers, sausages, and other products fell despite price cuts. The California-based company lowered its full-year revenue forecast as a result. Beyond Meat now expects revenue between $360 million and $380 million for the year. That's down from the $375 million to $415 million it forecast at the end of the first quarter, the AP reports. Beyond Meat's shares fell 10% in after-hours trading Monday.
US revenue dropped 40% as both retail and food service sales weakened. International revenue was down 8.7%. In a conference call with investors, Beyond Meat President and CEO Ethan Brown said the company faced tough comparisons to the second quarter of 2022, when a new beef jerky product generated sales and restaurants were reopening and placing big orders. But Brown said the company is also struggling to appeal to new customers because of perceptions that its products are unhealthy and overly processed. Brown said an ad campaign launched last week will better explain its "clean and simple" manufacturing process and highlight the products' health credentials.
"We're going to be much more aggressive in our marketing," Brown said. "It is an education issue. The facts are there. The health benefits of our products are very strong." Brown said Beyond Meat has also reached out to some of its competitors to discuss working together on ads that would help change perceptions about the category. Beyond Meat makes plant-based burgers and nuggets in a partnership with McDonald's in Europe, but those products aren't offered in the US. Brown said he expects more US fast food restaurants to add plant-based options in the near future.
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