Vegan food firm Beyond Meat has seen its sales plunge by almost a third as the rising cost of living pushes shoppers to buy cheaper animal protein.
The plant-based meat substitute maker says net revenues fell by 30.5% in the three months to the end of June, compared to a year earlier.
Shares of the company fell by almost 12% in extended trading in New York.
Shares of the company fell by almost 12% in extended trading in New York.
On Monday, the company said it had been affected by “softer demand in the plant-based meat category, high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession”.
It added that it now expected annual revenue of $360m to $380m, down from earlier estimates of as much as $415m.
Demand has also been hit by an increased scrutiny of the health benefits of vegan products, Beyond Meat’s chief executive Ethan Brown said.
“This change in perception is not without encouragement from interest groups who have succeeded in seeding doubt and fear around the ingredients and process used to create our and other plant-based meats,” Mr Brown added during an earnings call.
In October, the company said it would cut around 200 jobs to save an estimated $39m in costs over 12 months.
Vegan food firm Beyond Meat has seen its sales plunge by almost a third as the rising cost of living pushes shoppers to buy cheaper animal protein.
Shares of the company fell by almost 12% in extended trading in New York.
The plant-based meat substitute maker says net revenues fell by 30.5% in the three months to the end of June, compared to a year earlier.
On Monday, the company said it had been affected by “softer demand in the plant-based meat category, high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession”.
Shares of the company fell by almost 12% in extended trading in New York.
Shares of the company fell by almost 12% in extended trading in New York.
On Monday, the company said it had been affected by “softer demand in the plant-based meat category, high inflation, rising interest rates, and ongoing concerns about the likelihood of a recession”.
It added that it now expected annual revenue of $360m to $380m, down from earlier estimates of as much as $415m.
Demand has also been hit by an increased scrutiny of the health benefits of vegan products, Beyond Meat’s chief executive Ethan Brown said.
“This change in perception is not without encouragement from interest groups who have succeeded in seeding doubt and fear around the ingredients and process used to create our and other plant-based meats,” Mr Brown added during an earnings call.
In October, the company said it would cut around 200 jobs to save an estimated $39m in costs over 12 months.
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