The vegan hype train may finally be over after its poster child admitted last night that it was nearly cooked.
Beyond Meat — once worth $7.8billion — is now almost worthless after shares plunged 37 percent following news the company is grappling with $800million in debt.
Even Kim Kardashian couldn’t keep the sizzle alive.
The brand reached grocery stores in 2013, promising the fresh taste of a burger without a butchered cow.
For $8 to $10, shoppers could grab a package of two meatless patties, branded with a green cow wearing a cape.
With a more light-hearted approach than rivals like No Evil or Simulate, Beyond quickly became the poster child of plant-based protein.
But the industry has been skewered. Customers’ appetites for fake meat were charred.
‘Beyond Meat suffers from taste and texture issues, high prices, and perhaps an “ultra-processed food” image,’ Jerry Thomas, the CEO of Decision Analyst, told the Daily Mail. ‘The chances of the company surviving are meager.’
Kim Kardashian filmed an advertisement with the plant-based meat company in 2022, saying ‘I believe so much in the mission of Beyond that I’ve stepped in to help with my greatest asset – my taste’
When Beyond Meat went public in 2019, it was hailed as the future of food, with its stock briefly soaring more than 350 percent on a plant-based craze.
McDonald’s tested Beyond patties in its burgers, Burger King added the Impossible Whopper, Dunkin’ launched a Beyond breakfast sandwich, and investors bet on a meatless future.
But McDonald’s and Dunkin’ have since dropped their options after weak sales. Burger King still sells the plant-based Whopper, but at limited locations.
Smaller plant-based restaurant concepts like Neat Burgers and Planta have closed or filed for bankruptcy, while famous high-end restaurants like Eleven Madison Park have nixed their plant-based menu.
‘The problem for Beyond Meat is that the company is not living up to its own hype,’ Neil Saunders, managing director at GlobalData, told the Daily Mail.
The industry’s dramatic fall comes at a difficult time for the meat industry. Beef prices have hit historic highs, and America’s supply of slaughter-ready cattle has dropped to its lowest since the 1950s.
Analysts say two problems are driving the vegan decline: cost and a shift toward natural foods.
Shoppers squeezed by food inflation are trading down.
Ethan Brown, the founder and CEO of Beyond Meat, has seen the company’s stock quickly fall apart after a $234 valuation in 2019 – it’s now at just under $2
Beyond Meat is a bellwether for the rest of the vegan meats industry, experts say. Companies have failed to live up to their lofty sales targets and have forced major corporations to cancel partnerships
Campbell’s Soup has posted major gains in its $3 canned dinner division, Hamburger Helper’s $2 boxes are surging, and McDonald’s says promotions are pulling customers back.
In that environment, analysts say few households will pay a premium to save a cow’s life.
And that has hurt the company’s bottom line. Beyond’s revenues are down 20 percent this year.
‘Beyond is an expensive option,’ Saunders said.
Plus, shoppers have been influenced by the federal government’s push to get ultra-processed chemicals out of the American food supply.
Even though Beyond’s ingredient list often includes familiar items and doesn’t use soy, the company has struggled to shake the perception that its products aren’t natural enough.
‘There is a market for fake meat, but consumers are broadly skeptical of the category as it is not seen as particularly natural and is viewed as being highly processed,’ Saunders added.
‘This means demand is sluggish and that, along with competition, has weighed down on Beyond Meat’s performance and valuation.’
Beyond Meat’s stock has lost more than 97 percent of its value since its peak in 2019
Beyond Meat is launching new products in an effort to bring in new customers – including a new Ground alternative with four simple ingredients
Beyond Meat has tried to reignite interest with store promotions and merchandising.
In August, the company launched a new Beyond Grounds product that replicates taco fillings and pasta proteins in four flavors.
It’s also launched $1 coupon promotions and slashed products that weren’t selling, like its mimic beef jerky.
But, ‘If the product isn’t aligned with what consumers want, it won’t be effective,’ Saunders said.
The stock’s collapse highlights how far the one-time Wall Street darling — and the wider vegan market — have fallen.
Analysts say Beyond Meat’s survival depends on convincing skeptical shoppers to give fake meat another try.
But with sales sliding, customers drifting back to the butcher, and investors losing patience, its toughest fight may be proving its burgers belong on the table at all.
‘Once a company has fallen on its face, it’s very difficult and time-consuming to reboot and try again,’ Thomas said.
‘As plant-based “meats” technologies improve, there is no reason the category cannot grow in the future.
‘The category still has long-term potential.’
The company didn’t respond to the Daily Mail’s request for comment.
