Diving overview:
- Beyond Meat CEO Ethan Brown told investors on Tuesday’s earnings call that the company expects to grow by 2024 by cutting operating expenses, increasing prices on some products and “right-sizing” its production base. It said it would make “significant cost reductions” to its operations.
- Beyond Meat’s priority is to offset previous price cuts to make its products more attractive to cash-strapped consumers.company Reported revenue was $73.7 $1 million in the fourth quarter Through December 31st — down 7.8% from the same period last year.
- The quarter marked the seventh consecutive year of negative sales as the company continues to battle challenges. In the plant-based field, include price, Skepticism about whether the product is nutritious, questions about the ingredients used to make the offerings, complaints about the taste.
Dive Insight:
After going through a lot of trouble, For the past two years Beyond Meat is taking additional steps to improve the company’s financials and drive demand for its plant-based products. The company last week unveiled its fourth generation Beyond Burger and Beyond Beef patty, which CEO Ethan Brown said “offer superior health benefits and taste.”
Beyond Meat CEO Brown said on an earnings call Tuesday that the company plans to increase the price of its new burgers because of more expensive ingredients, including the decision to switch from canola oil to avocado oil.
TD Cowen analysts said Beyond Meat’s latest quarter and 2024 outlook “demonstrates that the company is well on its way to transitioning to a sustainable model.”
Still, the research report notes that despite the plant-based meat company cutting operating costs, shrinking its production network and implementing price hikes to support profit expansion, “BYND is growing and cash-positive.” “I’m concerned about their ability to pivot to flow.” ”
In recent months, Plant-based consumers are demanding cleaner ingredient decks to your own products. Experts in the field say early pioneers need to go back to their roots with messaging that focuses on a product’s health benefits and positive environmental impact. Beyond Meat is doing just that with its latest burger improvements, which the company calls its “most significant refresh to date.”
Beyond Meat expects continued strong demand in the European market, particularly in food service outlets. “We served strategic customers in this important market for plant-based meat, including McDonald’s continued leadership in countries such as Austria, Germany and Ireland,” Brown said.
The company plans to continue withdrawing from certain markets and discontinuing some product lines in 2024. Brown told analysts that Beyond Meat plans to: Ended production of plant-based beef jerky jointly developed with PepsiCo This is to “allow us to focus our resources on modern product platform innovations.”
Last November, the company was in survival mode with potential “going concern” risk, analysts said. Although the company’s job cuts and withdrawal from certain markets have been successful, much remains to be seen in the company’s future. “This will depend on whether the company can stabilize sales declines,” analysts said in a recent note.