The company promoting plant-based alternative meat products reported significant loss when compared to 2021.
The situation is the result of customers choosing less expensive food options, as the global economy, high inflation rates and increasing product prices can heavily impact all aspects of everyday life.
However, as CEO Ethan Brown explained, Beyond Meat is looking for solutions.
“The household penetration for the plant-based meat category, according to Numerator data, slipped for a second consecutive quarter falling roughly 20 basis points versus second quarter of 2022. […]
“We are significantly reducing operating expenses while focusing on a more narrow set of strategic partners, retail and food-service opportunities and utilizing lean value streams across our beef, pork and poultry platforms”, Brown commented.
The company lost almost $102 million for the first quarter of this year, almost double if looking at the same period last year. However, its representatives declared that operations will continue to focus on sustainable growth, stability and market position. Also, it will cut down on production flow and expenses, including reducing employee numbers, management activities, and marketing projects.
This is the second time this year that Beyond Meat announces workforce reductions, after already cutting down on more than 240 jobs so far. Product price reductions and product innovation are also taken into account as further steps.
The measures are meant to boost cash flow generation.
“In retail, we plan to restore growth to our core product offerings, burgers, beef and dinner sausage in the refrigerated set through exciting product renovation, and to leverage and support these renovations by pursuing distribution expansion, certain aforementioned strategic pricing activities and targeted marketing.
“These products which generally carry the highest margins across our product portfolio account for roughly three-quarters of our total gross revenues and the majority of our retail gross revenues”, Brown added.
Health benefits of the company’s products were also discussed as a part of the corporation’s strategy for the future. Also, the introduction of an already prepared food product portfolio is also possible.
Summing up, Beyond Meat Inc. registered a $299.3 million loss and recorded sales accounting for $339 million during 2022, translating into a significantly lower profit when compared to the previous year.