It’s been two years since we were last covered beyond meat. The plant-based meat company was once praised as “Tesla of the food industry.” Supported by Hollywood celebrities, it is positioned as a climate change solution, with the aim of reconstructing how the world consumed protein beyond meat.
But by 2022, the company had lost 80% of its value and was struggling to float. Fast forward to today, beyond meat, about 95% of the market capitalization has disappeared. So, what happened?
Ascending and descending beyond the meat
Hot Start
Founded in 2009 by Ethan Brown, meat has brought its mission to create sustainable, nutritious, plant-based meat alternatives. The company aimed to address global challenges such as human health, climate change, resource constraints and animal welfare.
In May 2019, Beyond Meat was released with a bang. The stock more than doubled on the first day of trading, indicating strong demand for plant-based options. At its peak in July 2019, the stock price reached $234.90. Today, it is only $3.44 at the time of writing, and is down 95%.
Even Hollywood celebrities can’t save beyond the flesh from its collapse
During their public debut, Beyond Meat was a success story. It raised $241 million on the day of the IPO and gained support from celebrities such as Bill Gates and Leonardo DiCaprio.
Beyond meat, Kim Kardashian was brought on board as ambassador and chief taste consultant. But as the economy weakened, this was also true even when it exceeded meat sales. McDonald’s finished his bead meatless pate test, which took a major blow to the company. Their partnership, announced in early 2021, was quietly shelved by June, with Beyond’s shares hitting 6%.
In addition to the company’s misery, he was arrested in 2022 for reportedly biting the man’s nose after a University of Arkansas football game, surpassing the then-Doug Ramsey of Meat. The strange incident caused widespread media coverage, further denting the company’s public image.
Some argue that taste played a role in the decline. Critics said Beyond Meat’s products didn’t bring the flavor to its fullest. In fact, Scott Shafer suggested in his video analysis that he could face bankruptcy beyond meat by 2024.
What was wrong?
Inventory drop
Stocks plummeted from $239 in 2019 to just over $3 today. Sales fell, leading to layoffs and factory closures. Consumer interest has diminished as taste and experience expectations have not been met. The 2022 COO scandal added to the company’s challenges.
“This was made to be a huge disruption in food supply and a major threat to the beef industry. It didn’t work that way.”
Industry challenges
Plant-based meat has evolved from traditional bean burgers to more advanced products like burgers and impossible foods. Beyond the meat IPO, it was in line with growing interest in meat alternatives, with sales reaching $1.3 billion by 2020, rising 46% from the previous year.
However, growth hit a wall. why?
Price disparity: Plant-based meat was consistently more expensive than traditional options, costing around $4.20 per pound. Inflation has made consumers even more price sensitive. Restaurant Struggle: European markets were getting better, but the US fast food chain was facing challenges. The complexity and low demand for drive-thru has hindered progress. Taste and Health Concerns: Initial marketing framed these products as healthier, but consumers questioned the highly processed ingredients. Social media backlash added to skepticism.
“Being processed by many consumers is at odds with health, health and ‘better for you’. ”
The road ahead
Despite these hurdles, they have not given up on beyond meat.
Product Reformulation: The company is working to improve taste and texture with plans to introduce new steak alternatives. Health Focus: Beyond works with health experts to seek support from organizations such as the American Heart Association. Cost Reduction: By improving production efficiency, they aim to bring prices closer to traditional meat.
“Over time, we can lower animal protein by leveraging efficient production processes.”
Long-term outlook
Processing innovations can enhance taste and texture. A lower price could attract a larger audience. As global meat consumption increases, sustainable alternatives may find new momentum.
Final thoughts
Although we face important challenges beyond the meat, we are determined to adapt. A focus on innovation, health and affordability could be key to bringing back consumers and ensuring their place in the future of food.
“We fought through Covid, High Inflation and industry backlash. We’re still standing and getting stronger.”
Below is a CNBC video about “Why the plant-based meat industry beyond meat could not stand the hype.”
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