Beyond Meat reported a wider-than-expected loss as demand for its meat substitutes tumbled.
Source: Beyond Meat (BYND) Q3 2022 earnings
The business model is messed up.
- They sell fake meat products in the meat department, where meat eaters are shopping for – well – meat.
- The products cost much more than actual meat. Which doesn’t sell well in a high food inflation environment.
- The primary sales justification is buyers seeking virtuousness.
- Many buyers (me included) have sampled the products – found they were fine but see no reason to pay 2x (or more) for fake meat.
The current business model does not make sense.
