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By Agroempresario.com
Beyond Meat, the plant-based meat alternative company, announced a 6% workforce reduction and the suspension of its operations in China as part of a plan to reduce operating expenses. This decision comes after the company posted its second consecutive quarter of year-over-year growth following two years of declining sales.
The company reported a 4% year-over-year increase in net revenue in Q4 2024, reaching $76.7 million, driven by price increases and lower trade discounts. However, the cost-cutting measures will include laying off 44 employees in North America and Europe, eliminating certain open positions, and making changes to its executive team. Additionally, Beyond Meat will shut down its operational activities in China by the end of Q2 2025, affecting around 20 employees in the country.
Beyond Meat had invested approximately $22 million in its Chinese subsidiary, Beyond Jiaxing Food Co, since 2020, and had advanced another $20 million for operations. However, the company’s restructuring led to a reconsideration of its presence in China.
According to CEO Ethan Brown, the company is in the process of consolidating its manufacturing network, which has involved terminating several co-production contracts over the past 18 months and focusing on in-house production. "We had to reverse the chaotic expansion of our production network. We went from operating in over 13 sites with co-packers to consolidating into our own infrastructure and a single additional co-packer," Brown explained.
The company also plans to increase automation in its facilities and renegotiate raw material contracts to improve gross margin, aiming for 20% in the short term and exceeding 30% in the future.
Despite its withdrawal from China, Beyond Meat continues to expand in Europe. In France, the company successfully launched Beyond Steak at select retailers and introduced its plant-based nuggets at over 1,500 McDonald's locations. In the UK, it has added new products at Tesco, while in Georgia (the country), it has partnered with Wendy’s to offer the Beyond Plant Burger.
In the U.S., Beyond Meat’s marketing strategy aims to enhance product visibility in stores. "We want consumers to easily find our products in supermarkets, whether in the frozen or fresh sections," Brown stated.
One of Beyond Meat’s biggest challenges is public skepticism toward plant-based foods. Brown has criticized the use of the term "processed" as a means to discredit alternative meats, arguing that it is merely an attempt to "preserve the status quo" of the traditional meat industry.
Regarding the growing trend of regenerative beef, Brown dismissed it as an unviable solution for global protein production. "Any serious scientist studying regenerative beef will tell you that it’s simply not sustainable on a large scale," he said, adding that the meat industry faces severe environmental challenges, including climate change and livestock disease outbreaks.
With $1.1 billion in debt, Beyond Meat faces significant financial pressure. This debt originates from a convertible note issuance in March 2021, when the company was at its peak sales. However, Brown assured that in 2025, they will evaluate options to improve liquidity and restructure capital.
Beyond Meat CFO Lubi Kutua highlighted that in Q4 2024, the company raised approximately $46.7 million through the sale of new shares. "We are implementing a set of initiatives to achieve sustained EBITDA-positive operations by the end of 2026," he stated.
With a strategy focused on profitability, manufacturing restructuring, and a campaign to reposition plant-based meat in the market, Beyond Meat aims to solidify its place in an increasingly competitive sector. However, its future will depend on its ability to reduce losses and convince consumers of the benefits of its products.
