What's behind the slowdown in plant-based meat sales?

With major companies posting lower-than-expected revenues, the once-hot sector is looking less appealing to investors. Three analysts give their take on what happened and the segment's future.

 

Megan Poinski, FoodDive

Nov. 22, 2021

 

Looking only at earnings reports and stock prices from the past few weeks, it could appear that the once red-hot plant-based meat sector has turned ice cold.

 

In the past six months, plant-based burger pioneer Beyond Meat has seen its stock price crater, with trading prices plummeting about 50%. Most of that drop has been in the last week, after the company reported an increase in total year-over-year sales, but missed its earnings targets because of production issues and changes in consumer behavior.

 

Beyond Meat isn't the only publicly traded company to see recent problems. Canadian meat giant Maple Leaf Foods showed disappointing sales for its plant-based division during the last two quarters, and is conducting a full review. The company's Greenleaf Foods division which includes Lightlife, Field Roast and Chao had 6.6% fewer sales in the most recent quarter, compared with last year. The previous earnings report, released in August, saw sales in that division down 20.6% compared with a year earlier.

 

Kellogg's MorningStar Farms brand also has experienced a sales slowdown in the last quarter, though the amount was not quantified in the company's earnings report or presentation. In the company's third-quarter 2021 earnings call, Kellogg CEO Steven Cahillane did not think it was a matter of concern at this point because he still saw enthusiasm around the sector...

 

A crowded category ...

 

The problem with premium prices ...

 

Getting back to growth ...

 

more, including links

https://www.fooddive.com/news/plant-based-meat-sales-slowdown/