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Overseas Sales of Beyond Meat Surge While US Sales Decline

Overseas Sales of Beyond Meat Surge While US Sales Decline Beyond Meat Food and Beverage Business

The geographic disparity in sales and volumes for US-based Beyond Meat has seen a decline in its home market, but a significant surge overseas. CEO Ethan Brown attributes the 8.7% fall in third-quarter revenues to the US, due to price cuts and decrease in net revenue per pound, although group volumes saw a slight increase. There was also a significant drop in US retail and foodservice volumes, while international volumes jumped across the two channels.

Brown believes the disparity is linked to different perspectives around health and climate between the US and Europe. In the EU, consumers prioritize taste, climate, and health in their food choices, unlike the US. This has contributed to the surging volumes of Beyond Meat’s products overseas.

Beyond Meat’s sales in US retail fell by 33.9% in the quarter, while international retail witnessed a 38.8% increase. The company’s partnership with McDonald’s for the meat-less McPlant burger in Europe is gaining traction, especially in markets like Austria, Germany, Ireland, and the UK.

The company also saw a negative gross margin of 9.6% and announced price cuts in February to shore up demand. However, the CEO assured that the pricing structure in the EU is where it needs to be relative to the competitive set, despite a broader-based pricing reduction.

Moving forward, Beyond Meat plans to revisit its pricing structure and rationalize its products to better align with the competitive landscape. Brown aims to bridge the gap from niche consumers to mainstream consumers and create a pricing strategy that sustains the business.

The company has also introduced a newsletter banner encouraging readers to sign up for daily news and industry insights to stay updated with the latest food and beverage industry trends and consumer insights.

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