Beyond Meat Inc. is considered one of the fastest growing food manufacturers in the USA.

Beyond Meat Inc. is considered one of the fastest growing food manufacturers in the USA.
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Beyond Meat has little substance

The manufacturer of meat substitutes delivers weak figures for the second quarter and must tighten its belt. Is the boom already at an end?

Plants instead of meat. Vegetarian food is undoubtedly in vogue. But now, a setback has been reported for the growing meat substitutes industry. US manufacturer, Beyond Meat, has extended its loss to around 97 million US dollars for the second quarter. The previous year’s quarterly loss was just under 20 million dollars. This time, the loss per share was 1.53 US dollars, whereas analysts had expected only 1.28. 

Jobs are being lost

According to the group, these weak figures are the “end of the boom for such foods in the USA.” Indeed, despite multiple trials of Beyond Meat products, potential industry buyers such as McDonald’s, could not decide to buy in bulk. Now, according to US media reports, up to four per cent of jobs at Beyond Meat are being lost. For the 2022 financial year, Beyond Meat expects sales of around 530 million dollars, whereas previously, up to 620 million had been expected. Surprisingly, the stock market price increased for a short time - investors had apparently expected far worse. Moreover, the share price had already fallen significantly in the past months. The shares are currently trading at around 38 dollars, while in the boom phase during 2019, they had reached a high of 240 dollars.

Similar in texture and taste to animal meat

The listed company, Beyond Meat Inc., is considered one of the fastest growing food manufacturers in the USA, offering a range of plant-based meat products. Founded in 2009, the company produces foods that are meant to be similar in texture and taste to animal meat. The brand advertises with the slogan “Eat What You Love”. The most crucial argument is that of climate protection. Those who eat meat substitutes in place of real meat are supposed to help in the fight against climate change, with meat production considered a crucial negative factor in climate change.

The company originally went public in 2019 and at the time was temporarily considered to be one of the hottest stocks in the USA. In the meantime, the euphoria has cooled considerably, also because more and more large competitors are entering the market themselves. In addition, high inflation and weak economic development dampen the offensive in markets such as Europe.

Falstaff Editorial Team
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