Past Meat mentioned its income has plunged by practically a 3rd as demand for its plant-based burgers, sausages and different merchandise fell regardless of worth cuts.
The vegan meals firm mentioned its income dropped practically 31% within the three months as much as the top of June in comparison with the earlier yr.
Shares within the agency fell 10% on Monday.
Amid the price of residing disaster customers are doubtless choosing lower-priced animal protein over options equivalent to plant-based merchandise.
Ambiguity round the advantages of plant-based options can also be impacting progress, CEO Ethan Brown mentioned in a name to traders.
“This variation in notion is just not with out encouragement from curiosity teams who’ve succeeded in seeding doubt and concern across the substances and course of used to create our and different plant-based meats,” he added.
The corporate is struggling to enchantment to new clients due to perceptions its merchandise are unhealthy and overly processed, he mentioned.
But it surely has launched an advert marketing campaign to raised clarify its “clear and easy” manufacturing course of and spotlight the merchandise’ well being credentials, he added.
“We will be way more aggressive in our advertising,” Mr Brown mentioned. “It’s an training situation. The info are there. The well being advantages of our merchandise are very sturdy.”
He mentioned the corporate has reached out to some opponents to debate working collectively on adverts to assist change perceptions about plant-based meals.
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Firm ‘testing’ worth cuts
The corporate forecast its 2023 income to be between $360m and $380m (£283m-£299m), in contrast with prior expectations of as a lot as $415m (£326m).
Past Meat has been “testing” worth cuts to draw clients by providing its core merchandise at a worth level at or beneath their animal protein equal.
In Europe and the UK Past Meat makes plant-based burgers and nuggets in partnership with McDonald’s, however these merchandise will not be out there within the US.
Mr Brown mentioned he anticipated US quick meals eating places so as to add plant-based choices within the close to future.
In October final yr Past Meat mentioned it might lower jobs to avoid wasting round $39m (31m) in prices.