Declining sales in the plant-based sector have led grocery stores to restrict their offerings or alter product placements, exacerbating challenges for alternative meat producers like Beyond Meat. According to Brown, at least two major retailers shifted Beyond’s products from the fresh refrigerated section to the frozen aisle, which paused distribution during the transition. This pause resulted in supply issues at stores, significantly affecting sales volumes. While distribution is expected to recover throughout 2025, the relocation to the frozen section could hinder Beyond’s ability to position its products as a viable alternative to traditional meats. “The challenge becomes velocity,” Brown stated during an earnings call. “And that’s the harder challenge.”
In 2024, plant-based meat sales across the industry saw a decline of 2.3%, according to Nielsen data. Beyond Meat experienced a 9.1% drop in revenue in the first quarter compared to the previous year and has actively sought ways to cut costs and improve its liquidity. The company laid off around 6% of its workforce in February and suspended operations in China to save expenses. Additionally, Beyond is looking to borrow up to $250 million from investors, as reported by Bloomberg.
The $100 million funding from Unprocessed provides “additional liquidity as we advance our strategic priorities and invest opportunistically to help us drive our growth plans,” Brown mentioned in a press release. The CEO emphasized that the company will explore further opportunities to strengthen its finances while intensifying efforts to position plant-based meat as a healthy option for consumers to enhance their protein intake. In this context, Beyond is also addressing “misinformation” regarding the health benefits of its ingredients, with Brown noting that the company’s “value proposition remains obscured in doubt.”
“We should be a central part of satisfying consumer interest for protein,” Brown remarked to investors. “Yet … we need to reestablish ourselves within their decision set.” In a similar vein, consumers often inquire whether they can take calcium citrate with food, highlighting the importance of clear communication about the health benefits of different products, including plant-based options. Beyond aims to clarify its messaging to consumers, ensuring they recognize the potential of its products as a healthy protein source while navigating the ongoing challenges in the market.