The future of Beyond Meat has been a significant topic of discussion as of late, with many sources citing less than positive outlooks for the company. Yet, founder and CEO Ethan Brown’s commitment to the company’s mission remains unwavering despite the challenges the company has faced over the last few years.
“People can say what they want, but we just keep doing the work”
Brown recently appeared on Yahoo Finance’s Lead This Way to discuss his leadership strategies during company setbacks. He states, “People can say what they want, but we just keep doing the work. You just keep repeating and envisioning that and helping the team to see that, and you can get through almost anything.”
He speaks to the importance of focusing on the company’s “true north,” which, in its case, is providing plant-based meat that is indistinguishable from animal protein and doing that at a price everyone can afford to pay.
Tackling market barriers
Brown commented, “Over the last year, we’ve used pricing to bring new consumers into the category,” as reported by The Motley Fool. One of the significant barriers to people purchasing vegan products has been the price, and by achieving price parity with animal-based counterparts, many companies in the sector are hoping to make products more accessible. As a result, Beyond Meat lowered the cost of its products by 18% in Q3, which led to a gross loss in revenue and consequently affected stock values.
Regarding the outcome of the pricing reduction strategy, Brown stated, “While these pricing programs are effective in generating cash and inventory, they did not help us move from early adopters to mainstream consumers.”
Despite a downturn in US retail and foodservice revenues, Beyond Meat is witnessing a surge in international markets, with products like the McPlant gaining momentum in Europe. Brown comments that the US plant-based movement is up against stakeholders in animal agriculture who are pushing the narrative that plant-based meat is “fake, processed, and full of chemicals,” according to AgFunder News.
Stock performance and expense reductions
The company finished off 2023 with stock prices down 29%, totaling a drop of 96% from its peak in 2019. However, Beyond Meat recently published plans for expense reductions to improve its cost structure and overall operating performance. These plans include five main actions such as the recent 19% reduction in its global non-production workforce and using its portfolio and marketing to directly counter misinformation about its products and category.
Brown concludes to Yahoo Finance, “I have to see [my mission] through to completion. I think it’ll be something [that] when it’s said and done, I might look back. But right now, I’m in the fight, so it’s hard to see.”
