Beyond Meat plans for new steak introduction

USA – Beyond Meat is introducing a whole-muscle steak alternative designed to closely replicate the flavor and texture of a filet, targeting consumers with a focus on health.

At the start of the year, Beyond Meat revised its strategy in response to a persistent decline in sales.

The company’s new approach included price increases, a refreshed marketing initiative, and the discontinuation of its jerky product.

The company also introduced updated recipes for its offerings, such as its reformulated burgers, which were released ahead of Memorial Day.

The revamped burgers feature a switch from coconut and canola oils to avocado oil, as well as the inclusion of plant proteins like faba beans.

Despite these efforts, Beyond Meat reported its ninth consecutive quarter of year-over-year revenue decline in August.

The plant-based meat manufacturer continues to grapple with the broader challenges facing the sector, including what it describes as consumer misconceptions regarding the health benefits of its products.

During the April to June period, sales volumes dropped by 14%, reflecting weaker demand both domestically and internationally across retail and food-service sectors.

In July, Beyond Meat launched its latest product innovation, the “Sun Sausage,” marking a departure from its previous offerings that aimed to replicate traditional meat.

The new product is positioned as a unique plant-based protein designed to complement a variety of dishes, rather than imitating beef, pork, or poultry.

Despite ongoing revenue declines, Beyond Meat managed to exceed Wall Street expectations for the second quarter of 2024.

The company posted US$93.2 million in revenue for the April-June period, surpassing analyst forecasts of US$87.8 million and outperforming its own guidance of US$85-90 million.

However, demand for plant-based meat remains sluggish, with Beyond’s CEO Ethan Brown attributing the downturn to what he claims is a “sustained misinformation campaign” orchestrated by the conventional animal protein industry.

The company’s overall revenue for the quarter was down 8.8% compared to the previous year, with the drop largely attributed to a 14% decline in product volume.

While total revenues dipped, the introduction of premium products like the Beyond IV line and the US$10 Sun Sausages helped drive a 6.1% increase in net revenue per pound. Quarter-over-quarter, Beyond Meat’s sales rose by 23%.

One of the notable takeaways from the second-quarter earnings report was a significant improvement in the company’s gross margin, which jumped to 14.7%—a substantial recovery from 2.2% in the same period last year and 4.9% in the first quarter of 2024.

The company expects to see continued margin growth through the remainder of the year.

In the U.S. retail market, Beyond Meat’s revenue fell by 7.5%, though the rollout of new products, including Beyond IV beef mince, burgers, and sausages, contributed to a 20.5% rise in per-pound revenue.