Home NewsStock Market News Inflation crushes plant meat industry, Beyond Meat shares hit record low |

Inflation crushes plant meat industry, Beyond Meat shares hit record low |

by WOOWinvest
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Inflation crushes plant meat industry, Beyond Meat shares hit record low |

Beyond Meat (BYND-US) hit an all-time low on Monday (19th), falling for a fifth straight session and dragging other plant-meat stocks as inflation kept consumers away from high-priced products.

Beyond Meat ended Monday down 6.72% at $17.06 a share, after hitting an all-time low of $17.05 during the session. Beyond Meat has collapsed 74% so far this year, according to Dow Jones Market data, and is down a staggering 93% from its July 2019 closing high of $234.90. Beyond Meat launched in May 2019 for $25.

Other peers such as Oatly Group (OTLY-US) and Calavo Growers (CVGW-US) fell 1.67% and 0.74%, respectively, on Monday, bringing their year-to-date losses to 63% and 18%, respectively.

The big enemy of the plant-based meat industry—inflation

As inflation weighed on its consumers, Beyond Meat’s second-quarter earnings report in early August not only widened its losses, missed analysts’ expectations, but also lowered its full-year outlook.

Ethan Brown, CEO of Beyond Meat, said on the last earnings call: “The penetration rate of plant-based meat in U.S. households shrank for the first time in more than four years in the second quarter of this year. This is because consumers are extremely concerned about value. We believe that high inflation And the higher price of plant meat compared to animal meat, these two points are the most critical.”

Inflation does not appear to be going away anytime soon. Consumer prices rose 8.3 percent in August from a year earlier, according to the U.S. Department of Labor, with prices for housing, food and health care stubbornly high. Food costs in particular jumped 11.4 percent over the past year, the biggest 12-month gain since May 1979. increase.

Not only are food prices generally high, Beyond Meat products are also more expensive than other general animal meats. The average retail price for ground beef is $4.90 a pound, while Beyond Meat’s ground beef retails for about $8.35 a pound, Chief Executive Brown said last month.

“Consumers are facing a hyper-inflationary environment with less purchasing power for groceries, and it’s really hard to get them to pay for the higher-priced plant-based meat,” Brown said.

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