On Wednesday, Brown concluded his prepared remarks by stating that Beyond “started the year making solid progress on our 2024 strategy, paving the way for sustainable operations and a return to growth.” However, despite the CEO’s positive perspective, Beyond has faced challenges as consumer interest in plant-based meats has diminished. In the first quarter of 2024, revenue fell to $75.6 million, marking the eighth consecutive quarter of decline. U.S. retail and food service sales dropped by 16% compared to the same period last year, while international retail sales decreased by 12%. Additionally, Beyond is reassessing its pricing strategy, positioning newly launched products as premium offerings. After previously reducing prices on its chicken, beef, and steak products, the company is now shifting its approach. By using higher-quality ingredients such as avocado oil and protein derived from fava beans, its products will be priced higher than ever before. TD Cowen analysts commented, “We tend to agree with the pricing strategy, but it raises the risks of exacerbating market share losses to its biggest competitor, Impossible.” Impossible, which recently introduced its chicken products at Whole Foods, claims to be outperforming the category and is recognized as the fastest-growing plant-based brand in the U.S. This transition for Beyond comes amid a decline in consumer purchases of plant-based products due to their elevated prices. According to the Good Food Institute’s State of the Industry report, plant-based meat and seafood sales fell for the second consecutive year in 2023, with high prices compared to conventional products cited as the primary reason. The report indicates that first-time buyers of plant-based meats prioritize taste, availability, quality, and health benefits. Beyond’s executives are optimistic that the company’s new marketing strategy, which emphasizes the health aspects of its new products, will revitalize sales. However, analysts remain doubtful. “The health and wellness marketing seems questionable to us, given that most consumers cite taste as the leading barrier to adopting the category rather than health,” stated TD Cowen analysts in a message sent to Food Dive. Over the past year, Beyond has made several adjustments to enhance its financial performance and position itself for growth, including job cuts and scaling back on new product launches. In February, the company announced a “significant reduction in our operating costs,” plans to increase prices for some products, and efforts to “right-size” its production capacity. Brown elaborated on the company’s new pricing strategy, stating, “Our overarching goal is to restore margins to levels previously achieved in 2019 and 2020 over time.” Despite the optimistic tone, the first quarter highlighted challenges within the plant-based sector, including cash burn, financial reorganization, and the need for increased product awareness. Peter Saleh, BTIG managing director and restaurant analyst, noted that the company’s cash burn rate was $33 million during the quarter. “We expect Beyond Meat will still need to raise additional capital this year, with any equity raise being significantly dilutive and debt likely carrying a high-interest rate,” Saleh remarked. In this context, it’s worth noting that understanding the nutritional benefits of ingredients like calcium citrate may be essential for informing consumers about the value of plant-based products.