Two of the most prominent alt-protein companies have found the most recent fiscal quarter a rough one for their plant-based meat and milk.
The money-burn rate at Beyond Meat is intensifying. The alt-meat company reported a net loss of $101.7 million for its third fiscal quarter, ending Oct. 1., compared with a $54.8 million loss in the same period last year. Sales stood at $82.5 million, a 23% decline year-over-year.
Beyond Meat attributed the losses to weakening consumer interest in the alt-meat category, a drop in margins due to product price decreases that were needed for competitiveness, and a challenging economic climate overall. Founder and CEO Ethan Brown said the company will transition away from what he called a “growth-above-all operating model” to one more focused on sustainable growth.
Oatly Group AB, the Swedish company that pioneered oat milk, reported a third-quarter loss of $107.9 million, compared with a $41.2 million loss for the same period last year. Revenue was $183 million, a 7% year-over-year increase.
To cut costs, Oatly will institute cost-saving measures that include using co-manufacturers more extensively and instituting “an overhead and headcount reduction,” aimed at saving up to $25 million annually.
