Beyond Meat is seeing a significant decline in demand for meat substitutes

The American manufacturer of meat substitutes Beyond Meat has seen a significant drop in demand for its products in the first quarter of this year. Sales fell by 18 percent to 75.6 million dollars (70.4 million euros).

Net loss was $54.4 million compared to $59 million in the first three months of last year. This loss was greater than analysts expected. Turnover fell partly because customers such as McDonald’s and Yum Brands, the owner of fast food chains KFC, Taco Bell and Pizza Hut, purchased less. The company also had to give higher discounts to sell its vegetarian alternatives to burgers and sausages.

In addition to declining demand, Beyond Meat is also struggling with higher production and raw material costs. The El Segundo, California-based company said it is experiencing “continued weak demand in the plant-based meat category, inflation, high interest rates and concerns about the potential for a recession.”

The manufacturer of meat substitutes had to adjust its turnover forecast downwards several times last year due to disappointing demand and also cut jobs. Beyond Meat expects a turnover of between $315 and $345 million this year.