business news in context, analysis with attitude

With brief, occasional, italicized and sometimes gratuitous commentary…

•  From the Associated Press:

"Plant-based meat substitute maker Beyond Meat said its revenue plunged 30.5 percent in the second quarter as consumer demand for its burgers, sausages, and other products fell despite price cuts.

"The El Segundo, California–based company lowered its full-year revenue forecast as a result. Beyond Meat now expects revenue between $360 million and $380 million for the year. That’s down from the $375 million to $415 million it forecast at the end of the first quarter."

President and CEO Ethan Brown told investors that the company is "struggling to appeal to new customers because of perceptions that its products are unhealthy and overly processed. Brown said an ad campaign launched last week will better explain its 'clean and simple' manufacturing process and highlight the products' health credentials."

“We’re going to be much more aggressive in our marketing,” Brown said. “It is an education issue. The facts are there. The health benefits of our products are very strong.”

According to the story, "Brown said Beyond Meat has also reached out to some of its competitors to discuss working together on ads that would help change perceptions about the category."

I think Brown is right:  The entire category has some explaining to do.  The question is whether the explanations will fall on deaf ears, and whether the product tastes good enough to reverse the narrative.