For the global rollout came at an expense of $182m, while simultaneously masking falling retail sales of 20% in its core US market in Q4.Īt an earnings call in late 2021, Brown insisted many of the problems were temporary, and attributable to more conservative shopping and eating habits as the Delta variant of Covid-19 spread. Last year, for example, revenues grew 14% thanks to a rapid global expansion which drove international sales up 77%. “It’s a more patient game you need to play with food”īut Beyond Meat’s problem is not just that it can’t hit ambitious targets. Or to put it another way, it needed a compound annual growth rate of 40% every year for the next decade. In September 2019, when its share price had already fallen 37% from that July high, one analyst calculated Beyond Meat would need to be selling $3.7bn worth of its burgers (22 times its annual revenue at the time) to match the average price-to-sales ratio of its publicly traded peers. “There’s a bit of a Silicon Valley mindset with the investment, whereas it’s a more patient game you need to play with food.” “I don’t think investors appreciated those differences, particularly when you saw the rapid growth of Beyond Meat when it secured quick service restaurant listings in the US,” he says. Their valuations treated Beyond Meat like a tech or digital startup, where adoption rates and scalability can happen far quicker. Some investors failed to understand that it takes years – often decades – to change eating habits in any meaningful way, adds Will Hayllar, global managing partner at OC&C. “It was only to do with the hype of investors trying to make money. “I thought that was ridiculous” says Morten Toft Bech, founder of Meatless Farm, a British plant-based meat company, though he believes the extreme valuation had nothing to do with Beyond Meat. “It’s just another business selling a product below cost and it’s not sustainable”Īll the experts The Grocer speaks to agree on one thing: that the $13.4bn market cap achieved by Beyond Meat at its peak was completely disconnected from reality. One that even the announcement of Kim Kardashian in May as ‘chief taste consultant’ couldn’t counter, leaving many asking what went wrong at what was once a pioneer of plant-based meats. Today, the share price sits 90% below its July 2019 peak, It’s a dramatic fall from grace. A series of disappointing results culminated in November 2021 when analysts described the latest quarter as the one “that broke the camel’s back”. Within 18 months, the dream was starting to waver as weakening restaurant sales, a costly global rollout, and larger-than-expected quarterly losses in Q4 2020 caused Beyond Meat’s share price to slide. Perhaps unsurprisingly, the buzz didn’t last. By July, it went even further to a peak of $235 per share – an 840% increase inside three months. The boom in plant-based eating had pushed its share price up 300% to hit a dizzying $5.8bn valuation, even though the company had made just $88m in sales the year before. “To be able to have a dream and take that dream to this point is something that is hard to put into words,” Brown told a reporter against the din of his Beyond Meat colleagues behind him, decked out in branded caps and T-shirts.Ī month later, the buzz around Beyond Meat’s stock hadn’t left. It was May 2019, the day of Beyond Meat’s IPO, and less than 10 years since Brown founded the company to ‘change the world’ through plant-based meat. Lumina Intelligence: UK Food & Drink ReportsĮthan Brown smiled broadly as he rang Nasdaq’s opening bell in New York’s Times Square."For example, glaciers flowing across the Transantarctic Mountains are protected by broad, stabilising ridges. The previously unknown features have "major implications for glacier response to climate change," the authors wrote. In 2015, almost all of the world's nations signed a deal called the Paris Agreement which set out ways in which they could tackle climate change and try to keep temperatures below 2C.The oceans are already warming, polar ice and glaciers are melting, sea levels are rising and we’re seeing more extreme weather events.The Earth only needs to increase by a few degrees for it to spell disaster.Each of the last three decades have been hotter than the previous one and 17 of the 18 warmest years on record have happened during the 21 st century.Climate change will result in problems like global warming, greater risk of flooding, droughts and regular heatwaves.Scientists have lots of evidence to show that the Earth’s climate is rapidly changing due to human activity.
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