by Shushu Xie

Photo: thecity.ie

Beyond Meat has seen its share price rise, following its launch of a plant-based burger with its partner McDonalds. Double McPlant, a double-patty upgrade from McPlant, has been rolled out in McDonalds outlets in Ireland and the UK. Beyond Meat had more than 60pc of its value wiped off last year and the share price was at its all-time low in December 2022. 

Source: Google Finance

The business, a pioneer in plant-based protein, was founded by Ethan Brown in 2008. Its share price surged from $25 to $65 on the day of its IPO on Nasdaq in 2019, over which Ethan Brown said they could have raised more money in the lead-up to going public. But the trading price of the share was generally on the downward trend through 2022, and Beyond cut 19 pc of its jobs globally in October last year to cope with the sales drop.

Source: Google Finance

Beyond Meat products are sold mainly in grocery shops and restaurants. During the pandemic, when a lot of restaurants were shuttered in many countries all over the world, Beyond adapted by devoting more resources to its grocery channels. Then herd immunity from vaccine rollouts enabled many economies to reopen, as people started to dine out more, denting Beyond’s products sales in groceries. 

Prices are a concern for shoppers as the cost-of-living crisis continues to bite in many European countries including Ireland. Brown told CNBC that 93% of Beyond Meat buyers are not vegetarian, ’’a breakthrough’’ for the segment. For these shoppers who are consuming plant-based meat alongside real meat, a reduction in grocery shopping bills seems necessary to cope in the context of soaring food prices. Alternative protein is considerably more expensive in most countries, with a minimum of a 23% difference among the countries surveyed. 

Beyond Meat has invested aggressively in facilities, chefs and food scientists to improve the taste and texture of its products. According to SEC, Beyond leases close to 800,000 square feet of space. But a Deloitte survey from January 2023 said some investors were overly optimistic about plant-based meat, and that the reason the market for plant-based meat stagnated after continuous growth in recent years was because the market was saturated, with those who were potential audience having already tried the products. 

Since its establishment, Beyond Meat has not achieved a net profit. Its revenue has grown significantly in recent years, reaching $464.7 million in 2021, but the net loss for that year was $182.1 million, despite its products being sold in more than 90 countries in the world. In Ireland, its products like Beyond Burger are available in Tesco, Supervalu and fast food chains including McDonalds, and Burger King. According to the company, its 2022 revenues were expected to be between $400 million and $425 million, a decrease between 14% and 9% compared to that of 2021. 

The past two months saw a mild increase of Beyond Meat’s share price after stalling sales and sapping investor confidence that the company went through in 2022. In the fierce competition with other plant-based meat market players and real meat, Beyond launched its McPlant with McDonalds only in Ireland and the UK, without managing to launch the product in other countries. 

People’s food choices are getting progressively more driven by concerns with animal cruelty, health and the impact on the environment. The plant-based meat market is expected by Market and Markets to generate a revenue of $15.7 billion by 2027. Deloitte said that in 2022, the investments in plant-based meat by venture capitalists grew dramatically, indicating confidence in the sector in the long run, which hopefully might offset the encroachment of the hyperinflation on the industry.