Beyond Meat said its revenue has plunged by nearly a third as demand for its plant-based burgers, sausages and other products fell despite price cuts.
The vegan food company said its revenue dropped nearly 31% in the three months up to the end of June compared to the previous year.
Shares in the firm fell 10% on Monday.
Amid the cost of living crisis consumers are likely opting for lower-priced animal protein over alternatives such as plant-based products.
Ambiguity around the benefits of plant-based alternatives is also impacting growth, CEO Ethan Brown said in a call to investors.
“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,” he added.
The company is struggling to appeal to new customers because of perceptions its products are unhealthy and overly processed, he said.
But it has launched an ad campaign to better explain its “clear and simple” manufacturing process and highlight the products’ health credentials, he added.
“We’re going to be much more aggressive in our marketing,” Mr Brown said. “It is an education issue. The facts are there. The health benefits of our products are very strong.”
He said the company has reached out to some competitors to discuss working together on ads to help change perceptions about plant-based food.
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Company ‘testing’ price cuts
The company forecast its 2023 revenue to be between $360m and $380m (£283m-£299m), compared with prior expectations of as much as $415m (£326m).
Beyond Meat has been “testing” price cuts to attract customers by offering its core products at a price point at or below their animal protein equivalent.
In Europe and the UK Beyond Meat makes plant-based burgers and nuggets in partnership with McDonald’s, but those products are not available in the US.
Mr Brown said he expected US fast food restaurants to add plant-based options in the near future.
In October last year Beyond Meat said it would cut jobs to save around $39m (31m) in costs.
